Looking for advice. Hubby starts new job soon that offers a 410k, should we just forget it and invest otherwise? We are in no way are well off and really need money for retirement (25+ years from now).
I would join the 401 K at the lowest contribution % simply because it gives you a head start on being vested. Most companies have a graduated vested structure where you get fulled vested after 5 years
The answer is "It depends".
If you believe that the gov't will grab all tax advantaged plans and leave taxpayers holding the bag.... then "no". (I don't...not even pols are that stupid.) I think that they'll "helpfully" offer some sort of a conversion, or maybe get rid of some of the tax advantages. But to just make a naked money grab? Doubtful, and we'll see it coming from a long way off, to boot.
If the 401k has no employer match, then the answer is "maybe". Will you get any tax advantage from it?
If the 401k has an employer match, then the answer is "You'd be dumb to just leave money laying on the table." Until my employer discontinued it last year, I got a 100% match, up to 5% of my salary. That meant that I instantly doubled every dollar that I put in. Plus the tax advantages. Plus, the fact that my funds did OK, and made a few more bucks to boot.
It's a hard deal to beat.