Christine Benz: Hi, I'm Christine Benz for Morningstar.com. For retirement savers today, employer-provided retirement plans like 401(k)s, 403(b)s, and 457 plans are a key way to accumulate money for retirement.
If your employer is matching you on your contributions, don't get bogged down in whether your plan is good, bad, or indifferent. Put in enough to at least earn those matching funds. If you want to contribute more than just enough to earn matching funds, check up on the fees for the plan. That means administrative costs as well as costs for each of the funds. If your plan has high fees, you may be better off investing additional funds in an IRA rather than steering a lot of dollars into the high-cost 401(k).