No. of Recommendations: 2
The difference between a Roth IRA and a Traditional IRA/401K is usually pretty minimal, as Gordon's numbers show. It depends on exact assumptions, but basically there's not a large difference. Therefore, it's often good to have some in each, at least that's hwo I feel.

However, here's the bigger question, are you happy with your 401K plan selection? If all they offer you are load funds or 1.5%, 2% expense ratio funds that have trailed the market because of their huge expenses, then, well, screw em. Since it's going to work out about even anyway, there is absolutely no reason to have your returns eaten up in fees, especially without a company match.

Btw, even with a company match, if fees are 'too high' by 2% (annually), it can eat up the entire company match in about 35 years. So if your 401k selections aren't good, low cost, well performing, then feel free to steer clear.

If you decide to steer clear of your 401k, you can still put some money in a traditional IRA (usually tax free) as well as a Roth, so you can still play both sides of the game. Just note that your total contribution to both combined (not to each separately) can't exceed the yearly IRA limit.
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