You Might Not Ever See Your Money
This is obviously a worst-case scenario, but it’s always possible that you pass away before you have the chance to enjoy the money you’ve invested in your 401(k). Since most 401(k) plans restrict your withdrawals until age 59 1/2, a premature death means your money has been tied up for your entire life without providing you with any real benefit.
A disheartening scenario, to be sure — and one that’s highly unlikely for the vast majority of Americans — but it is a potential drawback.
