Ask a Fool: IRA vs. 401(k) -- Which Is the Better Choice?
If your employer's 401(k) or similar retirement plan offers matching contributions, you should be contributing enough to take full advantage of this. In other words, if your employer is willing to match your contributions up to 5% of your salary, this is the least you should be contributing.
Assuming that you're doing this, you can then put your additional contributions into your plan or an IRA, and both options have advantages.
The obvious advantage of increasing your 401(k) contributions is simplicity. All of your retirement savings will continue to be in one place, and 401(k) investments require minimal maintenance.
Source: Fool.com
