My new company (start up) started doing 401k this year without any matching. Should I contribute to it for take advance of tax deferral? It's through transamerica and the options are some what limited( mostly Target funds. I just rolled over my 401k from previous company to a Vanguard traditional IRA and I contribute to a Roth IRA and will look at the HDHP insurance next year so I can open an HSa.

The benefit is your contribution limit is much higher in a 401k than IRA. Yes you should contribute unless the fees are crazy high.

we also use transamerica

our fees are low
our company match is 2.5% of the first 5%
i max it annually into VIIIX

Echoing those who mentioned contribution limits.

It's also important to consider ways to diversify your retirement portfolio from a tax standpoint. If they're not contributing in your 401k, and depending one your tax situation, be sure to fund your Roth as well.

Depending on your income level, you may not be eligible for the tax benefits of a traditional IRA if your company offers a 401K.

https://www.personalcapital.com/blog/retirement-planning/can-contribute-401k-ira/

IRA Deduction Limits


If you save with both a 401k and a traditional IRA, you may also face some limits on your ability to deduct your contributions depending on your income. Contributions to a Roth are never deductible.
For instance, if you are covered by a retirement plan at work:

• You can deduct up to the contribution limit, if you're single and your modified AGI is $64,000 or less for 2019. This is up from $63,000 in 2018. You can take a partial deduction if your income is between $64,000 and $74,000 in 2019 (between $63,000 and $73,000 in 2018). There's no deduction for people who earn more than $74,000 in 2019 ($73,000 in 2018).
• If you're married and filing jointly, you can deduct the full amount if your modified AGI is $103,000 or less in 2019 (up from $101,000 in 2018). You can take a partial deduction if your income is between $103,000 and $123,000 in 2019 (between $101,000 and $121,000 in 2018). There's no deduction if you earn more than $123,000 in 2019 ($121,000 in 2018).

Deducting your contributions is always an added bonus, but keep in mind even that if you're above the limit to make a contribution and reduce your taxes, there are alternative and potentially better strategies to explore than the nondeductible Traditional IRA.

OasisMan said:

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we also use transamerica

our fees are low
our company match is 2.5% of the first 5%
i max it annually into VIIIX

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for retirement acct purposes what do you like about VIIIX over VTSAX or a target date fund?

It's going to be very similar to vtsax, smaller exp ratio

I don't think we have vtsax as an option anyway

I'm just starting in my career, going 100% stocks
Will eventually add on some bonds and create my own target fund