1. I think a ROTH IRA is generally better than the 401k IF (a) there is no company match, and (b) if your contribution is not going to be more than the $5,000 ($6,000 age 50+) a year anyway.
2. My former employer paid the "going rate" which was defined as just enough to keep their employees from going. Eliminating the company 401k match is usually just another way to squeeze the employees. I bet the generous supplemental pensions and benefits for the top execs were not curtailed.
Jakeof OH12:39AM February 24, 2010
As a Financial Advisor, I've found that when I meet others in public and the topic of 401(k)s come up, several people have commented that they don't participate any more because the company no longer matches. Thanks for sharing the exact numbers. Whenever I hear someone say something like this, I always try to explain that whether or not the employer matches any of your contribution, you still need to contribute because its YOUR retirement savings.
The pretax contributions also reduce your taxable income so that it should only cost about $75-$80 out of your check for a $100 in contributions.
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Jake of OH 12:39AM February 24, 2010
Dean Voelker of IN 10:27AM February 06, 2010