You’re right DaCounselor and tax implications are worth considering; however, when you start having enough of a nest egg management fees and market fluctuations can wipe out any tax benefit. BTW the realization that 401k’s are not my friend partly contributed to my decision to become a self-employed consultant. I do the same work but pay less taxes and make more money even paying for my own retirement and medical benefits. Self-employed I qualify for SEP-IRA meaning I can contribute the lesser of 25% of my income or $46k. In many cases this is much more than you can contribute to a 401k.

A 401k does not mean you are restricted to certain funds. You can still have a 401k and invest it in cd’s I think.