Comment: It's not a big secret that

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It's not a big secret that

It's not a big secret that 401k plans have always been restrictive. They're set up that way on purpose, as they are retirement accounts. It's the company's plan, and they foot the bill, so a lot of the rules are up to them. If you don't like it, you have every right not to contribute.

A 401k is simply a way for employers to help and encourage employees to save for retirement, but because most mid & large size companies pay a significant amount of money to the plan provider as well as in company match, profit sharing, etc, they tend to get a little picky sometimes with what you can do with the 401k. Most of them want it used as a retirement account, not as a piggy bank.

It also replaces the all but extinct pension, where all the investment risk was laid on the employer, now it's shared, both in contributions and risk. With a 401k you actually have MORE say so as the money is self directed. The problem is most people don't know what they're doing.