Recordkeeping May Be Poor
A 401(k) plan is a notoriously complex instrument. Employers must comply with numerous federal regulations in setting up the plan and they might have hundreds or even thousands of employee accounts to establish and maintain.
Although many 401(k) providers have streamlined the process, many others struggle with recordkeeping. You might not get the type of complete and thorough information regarding your 401(k) account that you’re accustomed to with other investments or bank accounts.
