Comment by lateforwork
2 days ago
This is incorrect. First off, you do control your retirement funds. The amount of control varies, but at the very least you are offered dozens of mutual funds, indexed funds and bond funds to choose from. Some companies allow offer Fidelity BrokerageLink which allow you to invest in anything including individual stocks.
Secondly, as far as "another tax shelter" there aren't any. For most people the only tax shelter available is 401(k). And the tax shelter is a very good reason to contribute to 401(k), even if there is no company match.
Most people could do an IRA, no?
IIRC limits on pre-tax contributions to an IRA are much lower than pre-tax contributions to a 401k
Right, it is much lower, and also there is this: If your company offers a 401(k), the IRS limits your ability to deduct Traditional IRA contributions from your taxes based on your income.