[RockinRight]

Good advice.

I actually wasn’t aware that a 401k had a max contribution limit like an IRA does.

[Terry Mross]

Personally I’ve always believed 401ks are a rip off. The fees are so high they have to make a ton before you come out on top. And the guy “managing” it can shift money around constantly...win or lose, he gets paid.

I also don’t believe the money isactually there. That’s why you can’t withdraw it anytime you want. If all the holders withdrew at the same time they’d find out they don’t have as much money as they think they do.

When the company I worked for stopped matching J.P. Morgan/Chase sent letters out to everyone advising to keep pumping money in. Crooks.

Finally, I withdrew my money to buy a house. But my wife had to take out a “loan” to get hers. Both working for the same company with the same 401k through JPM/Chase. She had to make payments to pay it back. Now she left the company 3 months ago and still can’t get them to send her the money she’s paid them.

[oh8eleven]

First of all, you have to realize that the person doling out the advice is Carrie Schwab Pomerantz. Most of the time she doesn't have a clue.
Second, the reader says he/she borrowed money from their 401(k), and now can't put the money back in. Why not?
The adviser suggests "MAXIMIZE YOUR CURRENT 401(K) CONTRIBUTION" - I thought you had to pay back the money you borrowed first, before you could continue more 401(k) contributions?

[dfwgator]

Will 401Ks be such a hot idea when withdrawals are taxed at 50%?