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You wrote, The fact of the matter is that it's free money in your pocket right now. Because of your contributions you are paying out less in income taxes. Granted, the match is really nice, but you are still putting that money that was going to Uncle Sam in your pocket.

Actually, it's not free money at all. You just get to pay your taxes on the income later. And if you plan it you might get to pay less in taxes, relatively speaking.

And, Also, many people forget that by virtue of contributing to a 401(k) plan they are making it more likely that they will be able to deduct contributions to an IRA account.

How is that? You can't contribute to a conventional, tax-deductible IRA at all if you or your spouse contribute to a 401(k). Roth IRA contributions aren't tax deductible, so I assume you're not talking about them.

- Joel
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