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Do you get an employer match with any portion of your contribution? If so I believe it would be good to contribute at least enough to get the maximum employer match. If there is no employer match then I think the decision would be to determine whether there is something else that perhaps might be better such as a traditional or Roth IRA. Also consider that if your employer does continue the plan after December you will have lost the 3 months or so of contributions that you might have made.

With regard to the funds which are available to you, unfortunately we are all generally dependant upon what is offered to us. But like the poker player said, "I know the game is crooked, but it's the only game in town." A poor 401k is generally better than none and particularly if there is an employer match.

With regard to expenses in 401k's, my experience has been that some or all of the expenses are allocated across all participants in the plan and you generally don't see exactly what they are. In some plans, there may be additional expenses which are levied against the participants which seem to be somewhat dependant on actions taken at your request such as transfers between funds within the 401k.
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