Comments on: My Employer Stopped Matching My 401k – Should I Still Contribute? http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/ Helping a unique generation achieve financial independence. Thu, 09 Feb 2012 18:21:30 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: kristen http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-123697 kristen Thu, 07 Jan 2010 15:15:24 +0000 http://genxfinance.com/?p=1566#comment-123697 Let me point out one thing if you are deciding to split your investment into pre-tax and after-tax (Roth) accounts. You need to keep really good documents showing what you did, especially if you later move them around. Do not count on the 1099-R you receive when you start collecting to be correct. I know this from experience. My mom's 1099-R was incorrect and fortunately she kept very detailed records. What you do now will need to be tracked until all your money is distributed, keeping in mind that you may not be as sharp then either. Let me point out one thing if you are deciding to split your investment into pre-tax and after-tax (Roth) accounts. You need to keep really good documents showing what you did, especially if you later move them around. Do not count on the 1099-R you receive when you start collecting to be correct. I know this from experience. My mom’s 1099-R was incorrect and fortunately she kept very detailed records. What you do now will need to be tracked until all your money is distributed, keeping in mind that you may not be as sharp then either.

]]> By: pays to live green http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120420 pays to live green Mon, 01 Jun 2009 11:16:33 +0000 http://genxfinance.com/?p=1566#comment-120420 I prefer to contribute to a Roth IRA just because it is easier to get your money if you have an emergency. The whole point of retirement money is not to take out money, but it's still a point to consider. I agree with the others here that you should contribute to both just to have a balance of each, regardless of whether you company matches. I prefer to contribute to a Roth IRA just because it is easier to get your money if you have an emergency. The whole point of retirement money is not to take out money, but it’s still a point to consider. I agree with the others here that you should contribute to both just to have a balance of each, regardless of whether you company matches.

]]> By: Lean Cuisine Coupons http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120409 Lean Cuisine Coupons Sat, 30 May 2009 18:34:18 +0000 http://genxfinance.com/?p=1566#comment-120409 I too like to prefer 457(b) to 401k:d I too like to prefer 457(b) to 401k:d

]]> By: Mike Leone http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120407 Mike Leone Sat, 30 May 2009 17:36:53 +0000 http://genxfinance.com/?p=1566#comment-120407 Hmmm ... actually, that sounds like a good way to try and cover multiple bases. I think I will try that. Split the money I am planning to put toward retirement equally between my 457(b) (which is handled by MetLife), and open my own Roth IRA with an automatic weekly deduction (perhaps at T. Rowe Price - I've read that their plans are good; invest it in an index fund, perhaps). Hmmm … actually, that sounds like a good way to try and cover multiple bases. I think I will try that. Split the money I am planning to put toward retirement equally between my 457(b) (which is handled by MetLife), and open my own Roth IRA with an automatic weekly deduction (perhaps at T. Rowe Price – I’ve read that their plans are good; invest it in an index fund, perhaps).

]]> By: Jeremy http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120406 Jeremy Sat, 30 May 2009 17:14:33 +0000 http://genxfinance.com/?p=1566#comment-120406 Mike, that's a good, and common question. In my opinion it's a good idea to contribute to both pre-tax and after-tax accounts if they are available to you. There are a lot of unknowns of the future, so if you diversify your tax burden you'll be better prepared for whatever happens. With some taxable retirement money set aside along with some tax-free money, you can plan and change your distribution strategy to make the most of the money. Mike, that’s a good, and common question. In my opinion it’s a good idea to contribute to both pre-tax and after-tax accounts if they are available to you. There are a lot of unknowns of the future, so if you diversify your tax burden you’ll be better prepared for whatever happens.

With some taxable retirement money set aside along with some tax-free money, you can plan and change your distribution strategy to make the most of the money.

]]> By: Mike Leone http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120405 Mike Leone Sat, 30 May 2009 14:21:23 +0000 http://genxfinance.com/?p=1566#comment-120405 I work for a state gov't, so I have a 457(b), not a 401(k). Effectively, I have an 401(k) with no employer match. :-) My dilemma is: 457(b) pre-tax, or Roth after-tax? When I retire, my income level will almost certainly be less than my annual income now, so the tax rate *should* be lower then. So ordinarily, that is a better deal than a Roth (which would be after my current, higher tax rate). However, I would get the full amount I have invested, which might be better, what with future inflation. Since I just now finally paid off all my credit cards (w00t!), I'll have extra money for retirement savings. At the moment, I am leaning toward the 457(b), even without matching funds from my employer. BTW, I'm not a Gen X. :-) I work for a state gov’t, so I have a 457(b), not a 401(k). Effectively, I have an 401(k) with no employer match. :-)

My dilemma is: 457(b) pre-tax, or Roth after-tax? When I retire, my income level will almost certainly be less than my annual income now, so the tax rate *should* be lower then. So ordinarily, that is a better deal than a Roth (which would be after my current, higher tax rate). However, I would get the full amount I have invested, which might be better, what with future inflation. Since I just now finally paid off all my credit cards (w00t!), I’ll have extra money for retirement savings.

At the moment, I am leaning toward the 457(b), even without matching funds from my employer.

BTW, I’m not a Gen X. :-)

]]> By: Jerry http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120394 Jerry Fri, 29 May 2009 10:48:20 +0000 http://genxfinance.com/?p=1566#comment-120394 Yeah, it is still worth it to contribute... it's just not as good a deal as it was before, and it won't lead to as much financial benefit as it could have. Still, it they have kept your health insurance and haven't laid people off, then it's probably a good thing. Could be worse. Jerry Yeah, it is still worth it to contribute… it’s just not as good a deal as it was before, and it won’t lead to as much financial benefit as it could have. Still, it they have kept your health insurance and haven’t laid people off, then it’s probably a good thing. Could be worse.
Jerry

]]> By: Kristy @ Master Your Card http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120373 Kristy @ Master Your Card Thu, 28 May 2009 02:50:50 +0000 http://genxfinance.com/?p=1566#comment-120373 I think that whatever decision an individual makes, they need to be contributing to their retirement in some way. If they choose to do so IRAs as opposed to 401(k)s, then fine. However, I still recommend contributing to the 401(k) because there are additional benefits - as My Journey - mentioned - a big one being a higher contribution limit then IRAs. But, as long as some sort of contribution is taking place, then I think it's whatever works best for the person's individual circumstances. But, never should they give up contributing to retirement altogether. I think that whatever decision an individual makes, they need to be contributing to their retirement in some way. If they choose to do so IRAs as opposed to 401(k)s, then fine. However, I still recommend contributing to the 401(k) because there are additional benefits – as My Journey – mentioned – a big one being a higher contribution limit then IRAs. But, as long as some sort of contribution is taking place, then I think it’s whatever works best for the person’s individual circumstances. But, never should they give up contributing to retirement altogether.

]]> By: My Journey http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120372 My Journey Thu, 28 May 2009 01:40:12 +0000 http://genxfinance.com/?p=1566#comment-120372 I think there are a few great reasons to stick with your 401(k) even sans a match: http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/ Some include: Automation, Hardship Withdrawals, Loans I think there are a few great reasons to stick with your 401(k) even sans a match:

http://www.myjourneytomillions.com/articles/sometimes-401ks-are-better-than-iras/

Some include:
Automation, Hardship Withdrawals, Loans

]]> By: Eves Bank http://genxfinance.com/my-employer-stopped-matching-my-401k-should-i-still-contribute/comment-page-1/#comment-120370 Eves Bank Wed, 27 May 2009 20:33:51 +0000 http://genxfinance.com/?p=1566#comment-120370 I think that if you're set with saving money for retirement- then despite your employee not matching your contribution - it is still good because it is for retirement; match money is always good cuz its additional free money and that's just on the good will of your employer. I think that if you’re set with saving money for retirement- then despite your employee not matching your contribution – it is still good because it is for retirement; match money is always good cuz its additional free money and that’s just on the good will of your employer.

]]>