No 401K match - should I bother?

Hi Monkeys,

Curious to get everyone's thought on this. My company does not offer a 401K match, so I'm trying to figure out what's the best bet in terms of savings.

My thought is to contribute after-tax to a Roth IRA, as the fund I get through that has a much lower expense ratio than if I were to go through my company's 401K.

Is this the right way to think through this or should I still contribute to a 401K regardless of whether my company matches? Thanks!

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Comments (2)

Nov 5, 2016

Well, contributing to your 401K reduces your pretax income, meaning you get a lower hit on your tax bill at the end of the year. I would definitely contribute to it for that reason alone. If you make enough money, honestly, you should contribute to both your 401K and a Roth IRA. There's nothing wrong with saving as much as you can for it through these two vehicles.

Nov 5, 2016