1.5% 401k contribution if i contribute 6% is that even worth it?

[salem]

@carlosg Follow the steps at https://www.reddit.com/r/personalfinance/wiki/commontopics

That probably means taking the free money. Some free money is better than no free money. And even if you don't vest, the 401k still comes with tax advantages.

 

[sabiname]

@carlosg Yes it is worth it, why wouldn’t it be? It’s free money. All you have to do is save for retirement and you get it.

Do you expect to leave the company before 2 years?

 

[poindexterpaul]

@carlosg Unless you are 100% sure you will not be staying for 2 years, it's worth contributing to the 401k before contributing to an IRA you control yourself.

If you have the money to do so and there's a good chance you'll be employed there for two years, the ideal order would be 6% into the 401k, anything else into your own Roth/Traditional IRA, anything above that into the 401k again.

If you aren't staying for two years, you can just do the IRA, then dump anything else into the 401k.

 

[uscmike]

@poindexterpaul Is there a difference between putting the extra stuff over his 6% into his own IRA vs just keeping it in the companies being unmatched?

 

[poindexterpaul]

@uscmike In the IRA, the OP can choose their own funds. In the 401k, they're limited to whatever funds the company uses. With extremely rare exceptions, there will also be less fees in the IRA as well.