Before the introduction of the Roth IRA, it was fairly easy and straightforward to decide where to save money for retirement. If you had access to a 401(k) plan, it was always most beneficial to save the maximum pretax amount. After-tax contributions to a 401(k) plan were recommended if you had more money to save and did not qualify to make a deductible IRA contribution. These strategies were suggested regardless of whether you received a company matching contribution.

Now with the Roth IRA and the current IRA deductibility rules, the decision is not so cut-and-dry. This section will focus on saving for retirement in a 401(k) plan. However, as you explore this section, you should evaluate the other options available to you in saving for retirement and compare them to saving in your company's 401(k) plan.