I was listening to a Suzi Orman program where she is now saying, unless the employer offers a 40lK company match, do not contribute to a 40lK. The reason? The tax rates today are much less then they were 10,15,20 years ago.

My company does not match, however I contribute 15% of my salary. I am 59 years old with approximately $140K in my plan. I also plan to work to age 65.

Should I continue to contribute to my current 401K? My company also offers a Roth 401K

Fr_Chuck

Alot will depend of course on your interest rates and tax rates.

I can't image you will be getting a high enough interst rate with the Roth over the 401 K.

I made about 16 percent on my 401 K using a mix of Vanguard investments last year, well worth my investment.

It is a hard choice since many of the tax advisors are the same people who want to "sell" you the plan they have.

With only 6 years left at this point I personally dont beleive there could that much difference if you switched to another plan. But this is just my opinion from my own 401 K. Note I also have my orginal retirement plan which is a Roth and it earns alot less interest every year

fredg

Hi,
I am 64, retired because of family health issues, and still have some money in my 401k plan.
I would suggest just leaving it, as is, because you don't have that much more time left before you retire.
As a side comment, please try to work until you are 65, eligible for Medicare. The cost of Medical Insurance without a company paying most of it now is out of sight!
I am not asking what investment program you have your money in; such as all Stocks (some call it Equity market), or one such as both stocks and other (some call it Balanced), or the Fixed Income plan (paying only maybe 3% interest, or less).
If not in some kind of Balanced Fund, you might check on it. Leaving it solely in a Fixed Income will not give very much more over a years' time.
But, one has to be aware that a Balanced Fund is a little more "risky", but does pay more interest. Mine is in a Balanced Fund, and is still growing.
I do wish you the best.

walt17

Greetings,
I would add a few recommendations (opinions) for you to include in your considerations.
Don’t limit your retirement planning to your retirement date. Let’s assume you are going to live for awhile. So plan for at least ten years post retirement. (15 is better) Otherwise inflation can beat you up a few years down the road. When you aren’t able to do anything about it. With that in mind I would definitely continue adding to my retirement funds as long as I could without unreasonably depriving myself.
When you consider the types of 401Ks, the Roth has a couple of advantages.
1. You can delay withdrawing as long as you want. So you can let it continue growing tax free until you need it. Even though "retirement" is only a few years away, hopefully, "life" still has a lot of years in it.
2. If you do need it sooner, say 2 years from now, you can withdraw your contributions (not gains) without paying taxes or penalty.
If your companies ROTH plan doesn’t meet your needs you can also open a ROTH IRA elsewhere. As Fred pointed out, there are various options. Depending on your total picture you may find something more to your liking elsewhere. Note: I’m not advocating the ROTH, I don’t know enough about your personal situation. But it does deserve a look.
Good luck with your planning.
Walter