I'm helping a family member jump start their retirement plan, and she has asked for my advice. She is 31, and her employer only has a 4:1 401(k) matching plan (for every $4 she puts in, they put in $1).
Normally I would think to contribute to a 401(k) enough to get the company match, then contribute as much as you can to a Roth IRA. (I know there are very fine variations of this, but that would be the gist.)
I've never had to look closely at such a poor 401(k) matching plan before, so I'm not sure what to say. And every 401(k)s-for-beginners model assumes 1:1 matching contributions.
Does this matching ratio significantly throw off this strategy? Any thoughts on what a better strategy would be? Thanks!
Submitted May 26, 2017 at 12:29AM by lebek1 http://ift.tt/2r3AjDN
