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My 401k is making a few changes for 2007. First off, they are increasing the company match from a lousy 50% of the 1st 6% contributed to a slightly less lousy 100% of the 1st 4% contributed. They are also increasing the company match limit by $1000, which is still pretty lousy, but nonetheless, better than what it is now. In addition, they are offering the Roth 401k for 2007.

Now I know it is supposed to be best to contribute whatever percentage the company is going to match up to on the 401k, then contribute the max. limit to a Roth IRA, then any extra money you have back to the 401k. Unfortunately I haven't been too good at contributing to my Roth IRA, since it is so much simpler just to have my payroll deduct the amount from my 401k and I've unfortunately have pretty much neglected the Roth IRA. However, now that the Roth 401k is in the equation, what would be the best way to go about setting money aside, assuming I'm going to foolishly ignore my Roth IRA, but can easily contribute to my Roth 401k. I'm currently 32 and as of now am only contributing the 6% that my company will match. Does it make sense to drop it down to 4% next year on a pre-tax basis since I will still get the company match and perhaps do another 4% to the Roth? Thanks in advance for your help.

- Steiner74
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