401(k) plans can be great ways to save for retirement, but some 401(k)s are better than others. If you're stuck with a bad retirement plan at work, what's the best way for you to make the best of a bad situation?

In the following video from The Motley Fool's series on retirement investing, sponsored by TD Ameritrade, Fool consumer finance expert Dayana Yochim talks to Dan Caplinger, the Fool's director of investment planning, about how to make the most of a bad 401(k). Dan notes that many 401(k) plans have high fees and limited investment choices that aren't appropriate for retirement investing, leaving workers uncertain about whether they should use them at all. Yet Dan notes that even though your options can be limited, it makes sense to try to contribute at least enough to get your full employer match, especially if there's a single low-cost index-fund option that can meet your needs. In addition, Dan recommends looking at IRAs to supplement your retirement savings if your 401(k) isn't ideal.

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Dan Caplinger and Dayana Yochim have no position in any stocks mentioned. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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