Recordkeeping May Be Inadequate
By now, we’ve all figured out that a 401(k) plan is extremely intricate and complex. Employers have to follow lots of federal rules when setting up their employee accounts, which may be hundreds or even thousands. It’s true many 401(k) providers have tried to simplify the process, but many others are still having a hard time with their recordkeeping.
If you’re used to getting complete and accurate information with your other investments or bank accounts, don’t expect to obtain the same thing from your 401(k) plan.