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Author: willinmpls Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25223  
Subject: 401k w/out employer matching vs Roth IRA Date: 2/14/2008 5:02 PM
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Hi all,

I've been lurking and trying to learn about what I should do with my money for a while, and have to thank everyone here for making this such a great and informative site! I know that questions like this one have been asked and answered before, but I'm still not sure what I should do.

Basically, I'm trying to figure out whether I should be putting money in my 401k or Roth IRA (or both).

About me: 24 year old college grad, single, no house, making a bit under 30k/year.

My employer offers a 401k plan w/ limited matching (50% of my contribution up to 5%). However, I'm fairly certain that I have to be an active employee on Dec 31 of the match year to get the matching. While I like my job, ideally I will have a different job by next december and therefore not get the matching. Realistically it's hard to predict the future so I'd say maybe 50% chance I'm still an employee then.

So, what would you all recommend I do? As I'm writing this out I'm thinking that I should put 5% into the 401k so I have the possibility of getting the matching. After that I'd only have about 3% more to put towards retirement, which could go to either 401k or Roth IRA.

Thanks in advance,

Will (whose brain is hurting from trying to figure this stuff out!)
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