I’m with you on the 401k match JB. Even if you don’t think you’ll stay with the employer it’s still worth doing. A lot of times a job that’s thought to be temporary ends up last a lot longer than expected.

Even a 50 cents match up to 3% or 6% is still a 50% return on your investment. Everyone should always without any hesitation contribute up to the employer match- THEN max out the Roth IRA contributions.

Also, unless the employee is certain that they will leave the job prior to them being fully vested, then I would still suggest 401(k) first up to the match, even if it takes a couple of years to become vested on the employer’s contribution

@Jeff Doesn’t change for me. While I love the tax-free savings, what I’m most interested in is the person actually learning how to choose investments and self-educating themselves on the entire process.

Hi Jeff. How about in the case of an employer offering a Roth 401k? I’m still researching the funds available but if I could find an average to decent fund it would be best to max out that Roth 401k with my 100% match right?

@ Eric

My wife who used to be a 401k coordinator at a major hospital in our area was glad you brought up the vesting schedule. Another point she added is that many employers don’t give $1 for $1 match, say $.50 for the first 3%, etc. So the “free money” isn’t always as grand as it seems.

@ Jennifer I’m taking it your single? (no spouse to take advantage of a Roth IRA, too?)

Even with no match and hoping the 401k options aren’t absolutely horrible, then the 401k will be the next logical step. Does your company have a Roth 401k option? Something else you might want to consider.