Being advised to max out your 401(k)is Personal Finance 101. But is that universally solid guidance?

Tax-sheltered retirement plans offer the convenience of automatic investments and tax breaks—pretax contributions and tax-deferred compounding for traditional 401(k)s and tax-free compounding and withdrawals for Roth contributions.

But the availability and quality of the 401(k) are also important considerations.

Some workers don’t have access to an employer-provided retirement plan, and 401(k) quality can be uneven. High administrative costs, meager employer matching contributions, and costly investment lineups can detract from 401(k)s’ tax-saving features.

Meanwhile, the tax efficiency for investors’ nonretirement accounts has improved over the years.

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