Tips To Avoid Sabotaging Your 401(k) Plan - WMDT 47 News - Delmarva's Choice

SALISBURY, Md - Many people will be pre-occupied with tax season. But experts also say you should not neglect your 401(k) as well.

The top five biggest mistakes that could affect one's 401(k) plan include:

-Treating their plan like a benevolent banker

-Not considering the pro's and con's of rolling a former employer's plan into a retirement account

-Not paying attention to fees

-Letting temptation get the best of you

-Cashing out once you leave your job.

"The most important one is to resist the temptation to withdraw the funds. If there's some other way you can get the money, do that by all means. Most of the times we see clients will withdraw their funds and they don't know the penalties that they could be subjected to," says Sarah Lavdas, CPA of Twiley,Rommel & Stephens, PA.

Sarah also says that it is important for people to have a 401(k) plan now more than ever.

"In this day and age, because of the social security system right now, I don't that (Social Security) is the best funding plan. If you have a social security when you retire, it's not going to be enough to keep your standard of living like the past. New house, new car, boat, all that stuff. If you don't have a 401(k), you don't have anything to supplement your social security"