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> from those who won't contribute more than the match for 401k, This can be an entirely rational choice. Contributing less than the match is irrational because
by zrail 8y ago
> from those who won't contribute more than the match for 401k,
This can be an entirely rational choice. Contributing less than the match is irrational because it's giving up on additional compensation, but often 401K choices are terrible and the tax deduction isn't worth it in many circumstances.
- C1sc0cat 8y agoAnd its not like the tax advantages are much good in the US 401 system.
- tvanantwerp 8y agoPlus 401(k) fees are usually higher than if you just opened your own IRA with Vanguard and bought some no-load index funds. Rational order to do it is: fund 401(k) to the match, fund your own IRA to the max, then fund the 401(k) to the max.