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Subject:  Re: Worth it to open 401k if leaving job? Date:  8/16/2011  2:07 PM
Author:  aj485 Number:  69426 of 88529

I have been at my job for 3 months now and have not yet opened a company 401k. I am looking to leave this company soon (long story) and am wondering if I should bother opening a 401k at this point? Or should I just continue to invest in my Roth IRA?

If contributing to a 401(k) will decrease your contributions to the Roth IRA, I would say you should continue to invest in the Roth IRA, and not contribute to the 401(k).

If you will still contribute to the Roth IRA at the same level whether or not you will contribute to the 401(k), then it becomes more an issue of what benefits can you get out of the 401(k) investment that you can't get out of another investment....

- is there a company match?; if so, will you be vested by the time you leave?
- how much of a tax deduction can you realize?
- are there investments in the 401(k) plan that you can get at less cost than you could on your own? - examples might be things like if the 401(k) gets you institutional pricing on some funds, or can get you into a fund that you would like to buy that's closed to new investors
- will your account balance be at least $1000 before you leave? If not, your company may require that the money be rolled out of the 401(k), potentially negating some of the possible benefits

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