Reader's Question: Employer Retirement Plan

Employer Sponsored Retirement Plan Questions

My employer does not match in our company's retirement plan, should I continue to contribute into it or just start an IRA?

Submitted By: Nicole M.

This is a good question. I would begin answering by asking a couple of questions. 


  • Although your employer doesn't match your contribution, does your employer make any contributions to the plan?


If your employer is making contributions to your retirement plan through profit sharing or stock issuance, my advice would be to remain enrolled in the plan.  You may want to consider limiting your contributions and begin funding an IRA of your own. Please see October's issue of Money Matters for reasons why and IRA may by more beneficial than a 401(k).  


  • Are you confident you will continue to make regular contributions to an IRA?


If you cannot answer "Yes" to this question with certainty, I would recommend you continue to contribute to your company's plan. Often times it is much easier to have those contributions deducted from your paycheck as opposed to having it drafted from your bank account each month. If you are disciplined and focused on working towards reaching your retirement savings goals, you may benefit from contributing more into an IRA as opposed to your company's plan. I would advise you speak with a qualified financial professional for advice on your particular situation before making a decision. 

Thanks for the great question Nicole. If you would like to have your question answered, please submit your question to mgamblin@thegamblingroup.com.

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