The Motley Fool Discussion Boards

Previous Page

Financial Planning / Foolish 401(k)s


Subject:  401k w/out employer matching vs Roth IRA Date:  2/14/2008  5:02 PM
Author:  willinmpls Number:  23031 of 26127

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!)
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us