Thanks Bob for the information

My husband’s company does match but it’s so little that I don’t think even VB tell us it’s worth keeping the money there. His company, while it pays the bills is a horrible company. They set unobtainable goals for this region. Based on how much money this region makes depends on if he will get a pay raise. Then they set yet another unobtainable goal for the company nation wide and that determines how much (if anything) they will contribute to employee’s 401K’s. This year it is 20 cents per dollar up to 6%. So they contribute $31.20 a year. If I take his % down to 1 he will remain active in the program and then we can boost it up to 6% should they ever really start matching.

As for the taxes, we are still in a VERY small tax bracket. My husband doesn’t make that much per hour, and my federal standards we are just above poverty level. We have two kids so we qualify for EIC and child tax credits. I know those may not always be available, but for us, right now, it makes more sense to pay a little higher tax now and get the tax free money when we are older.

On a side note, we consulted with a VB approved financial planner and I was less than impressed. He suggested we take all of our 401K money and move it from the traditional 401K’s and put it into a Roth IRA. Knowing we would take a huge hit in taxes and money loss. He was even pushy about it.