DH just got the paperwork for a 401-K through his new job. Trouble is that all of the funds are very high fee, around 1.5% per year. Plus the paperwork didn't include any account fees, so still unsure of those. We are in the 25% tax bracket, even if he maxed out we'd be in that bracket.
So, where is the cutoff point between the tax deduction now and the horrible expense ratios? This is a choice between 401-K and Roth, we aren't at the point of being able to max out all tax advantaged yet. If we were that would make the decision easier.
Oh yeah, it doesn't appear that there are any matching funds from the company either. Just "profit sharing" that 1) may not happen, and 2) probably won't vest before he's changed jobs again.
And this job is through a contracting company and we have some hope he will eventually be hired on at the company he is at, so it's not likely to last a super long time, but we can't be sure of that. He already has a rollover IRA, so it would be super easy to get this rolled over when he next changes positions.
So, anyone have any thoughts about this? What's best, Roth with low fees or 401-K with high fees?