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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
Name:
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Employer does not offer matching contributions to 401k
Is there any sense in putting into a 401k if the employer does not match?
Is there a better alternative? Roth IRA?
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Posted 2/26/14 9:13 AM  |
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VikingChick
LIF Adult
Member since 5/11 1024 total posts
Name:
Anna
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Employer does not offer matching contributions to 401k
Not an expert, but 2 reasons:
1) reduces your taxable income if you need to be in a lower tax bracket
2) (obv) helps you save for retirement
Don't know about better alts...
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| Posted 2/26/14 9:23 AM |
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MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
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Re: Employer does not offer matching contributions to 401k
You can save alot more with a 401k than a roth ira. The 401k might have better investing options and less fees.
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| Posted 2/26/14 9:32 AM |
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jams92
Member since 1/12 6105 total posts
Name:
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Employer does not offer matching contributions to 401k
my employer does not match either, but i still contribute to my 401k. DH works in finance and said that is the best option for us...but i cant give you reasons why
ill try to get some more info from him later on today and update my post
Message edited 2/26/2014 9:45:48 AM.
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| Posted 2/26/14 9:45 AM |
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Katareen
5,000 Posts!
Member since 4/10 7180 total posts
Name:
Katherine
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Employer does not offer matching contributions to 401k
I'd max out a Roth IRA first--I think the limit fluctuates yearly but is around $5-$6,000 max per year. Then if you can afford after that I'd contribute to my employer 401K that doesn't match.
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| Posted 2/26/14 10:06 AM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19458 total posts
Name:
L
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Re: Employer does not offer matching contributions to 401k
http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/
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| Posted 2/26/14 10:12 AM |
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Millie3
LIF Adult
Member since 7/13 1280 total posts
Name:
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Re: Employer does not offer matching contributions to 401k
I would still do the 401k. If you are allowed ( due to income limits) I would also do a Roth IRA. Since you are not getting a match, try and put away as much as you can.
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| Posted 2/26/14 10:21 AM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: Employer does not offer matching contributions to 401k
I would still do the 401K even if there is no employer match.
The benefit is that it reduces your taxable income.
You can do a Roth IRA as well, but keep in mind not only are there income limitations, but contributions to a Roth IRA are with after-tax dollars.
I would contribute as much as you can now to your 401K versus doing a piece to the 401K and a piece to the Roth IRA.
The thought process is I know what the tax rates are now. Let me save as much as I can on tax now, knowing the rates, and potentially being in a higher bracket now, then when you are in retirement. As Roth IRA income is tax free. If you think you could potentially be in a higher tax bracket when in retirement, then the Roth IRA is a great idea.
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| Posted 2/26/14 11:30 AM |
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