401k question

I just received a letter from my employer stating I could join the 401k. However there is no match on funds deposited into the 401k. I don’t make alot of money at this job. I also noticed theres a lot of fees involved with this 401k and limited options for choices of investments. Is it better to deposit money in my roth ira as I can afford putting money in or let them force me to open this account?

If your employer offered a cash match, I would take the cash match as a form of savings and still start putting money into the ROTH IRA. In the long run, you will be better off when you turn 70 1/2 when you will be forced to take out the money in your Standard IRA.




In the case of no match, high fees, and limited investment choices, funding the Roth should be your first priority. Note that 401k contributions are pretax. And you have much higher contribution limits. Plus when you leave the company you can roll the 401k over to an IRA.

If funds are available, do them both.

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