Should i stop contributing to my 401k if??..? | Roth Ira

July 13, 2011 ? Advisor ?

I am hearing that some companies are suspending their matching contributions to employees 401k contibutions for 1 year to help the companies bottom line.

Here is my question. My company currently matches up to 6% of what i contribute to my 401k. If my company stops that match for 1 year, would it be wise for me to stop contributing to my 401k for that 1 year, and put that contribution into my Roth IRA?

The reason i ask is because from what i understand, you definately want to contribute up to the point of what your company will match in your 401k. Then if you have more money you can invest, it should be contributed to a Roth IRA. Then once you have maxed out the amount you can put into that Roth IRA, and if you still have more to contribute, then you should go back to the 401k and resume contributing to it.

Source: http://rothira.soolutions.com/roth-ira/should-i-stop-contributing-to-my-401k-if/

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