If you change jobs you get to keep the money. Under certain circumstances you may be able to get at your 401k dollars before you retire. Many plans allow you to borrow from your 401k and pay it back plus interest. You can even withdraw your funds prematurely. However, this is almost always a terrible idea.
Participation is voluntary.
If you do not want to save for retirement you aren't required to. Illustrating the Advantages If there are any significant disadvantages to a 401k plan, they are in these last two points i.e. participation is voluntary and there are ways to withdraw the money early. And among those employees that do participate not all save as much as possible. In my next column, I will expand on the various problems that exist with 401k's. However, I want to provide some numbers that illustrate the great advantage in investing retirement funds in a 401k.