Some 401(k) Plans Offer a Hidden Escape Hatch

More than one person has said to me, "Why do I have to be locked into this lousy 401(k) plan? The investment choices are terrible!" Check the fine print of your 401(k) plan. There might be a way out.

If there is, you will find it in the "Summary Plan Description," a document you should get at sign-up time, that describes what your plan is all about and how it works. The wording you're looking for is "in-service, nonhardship withdrawals." In other words, you still work for the company, but you want to take some money out, and not because of hardship.

Among your reasons for wanting out may be the desire for more control over your retirement money, more diversification in your retirement portfolio, the ability to choose from a broader universe of investments or the desire to own less of your company's stock. ...