No Employer Match? Here's How to Decide Whether It's Worth Saving in Your 401(k).

2026-02-20 07:07:20

When you’re eligible for a 401(k) match, saving in the account is a bit of a no-brainer. Doing so could net you thousands of dollars in additional retirement savings without extra effort on your part.

But when your employer doesn’t offer a match, you might feel unsure about whether your 401(k) is the right home for your savings. It’s ultimately an individual decision, but here are some factors to consider when deciding.

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Choose the account that offers the greatest benefits for you

A 401(k) offers several key benefits apart from a match. These accounts have high contribution limits, which is great if you want to set aside a lot of money. Most employers also let you choose between traditional and Roth 401(k) accounts, and Roth accounts don’t have the income limitations that Roth IRAs do.

But 401(k)s also have drawbacks. Your investment options are much more limited than they would be in an IRA. This can sometimes leave you paying more in fees than you’d hoped, which can affect the growth of your savings.

You need to weigh all these factors when deciding which account makes the most sense for you. If you’re comfortable choosing investments on your own, you might prefer to start with an IRA and switch back to your 401(k) only after you max out your IRA. But if you prefer the convenience of automatic paycheck deferrals, you might prefer to stick with your 401(k) even though it doesn’t offer a match.

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