Yes and no. Is that helpful 🤑
You should maximize your savings for sure, but all in a 401k is not certain. If saving on a pre-tax basis allows you to save more, that’s a good thing.
You certainly should grab all employer match available.
If available, consider using a Roth account – 401k or IRA too. No tax break now, but a great break in retirement when you probably need it most.
Invest some of your money outside a retirement program, a brokerage account for more flexibility- perhaps to build future interest and dividend income.
This applies even if you are among the few with a pension.
QUINNSCOMMENTARY 
You have repeatedly pointed out before the need for most workers to save more for retirement. Ideally, most should automatically invest 10-15% of gross income. Which means of course they must adopt a lifestyle which they can comfortably afford on that reduced income. That is the primary goal. As to asset location, a combination of a 401-k, Roth and taxable brokerage account would provide added flexibility once retired.
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Lot of good advice and food for thought by Brother Quinn and James. Young people need to save as much as possible for their future.
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Based on decades of experience, I have a different take – and it would vary depending on the age of the worker.
Assuming an individual 10+ years prior to retirement:
Yes, be sure to contribute enough to get the maximum employer financial support from your employer-sponsored 401k or 403b plan. Concurrently, ensure your employer-sponsored plan offers “liquidity without leakage” – plan loans where repayment can continue post separation, and where a plan loan can be initiated post separation. Liquidity is essential for those living paycheck to paycheck.
Importantly, make sure you enroll in HSA-capable coverage, and contribute at least $1 on the first day of HSA-capable coverage (to start the claims clock running). You need not prefund the HSAs – but so long as you are in HSA-capable coverage, you can contribute to cover expenses incurred after the HSAs is initially opened.
Then, ensure you contribute enough to get the maximum employer financial support to the HSA – some employers incorporate a matching contribution, some only contribute once the HSA owner opens the account.
Under current rules, your next dollar should likely go to the HSA – if only because the cost of health care in retirement is significant. In fact, under current rules, I would next max out the HSA contribution, because all future employers will not offer you HSA-capable coverage (most don’t today, and the HSA is 20+ years old). Keep in mind that, under current rules, HSAs contributions get better tax preferences via a cafeteria plan, and better tax treatment after age 65 – even is used as income replacement (a la 401k).
I would contribute what other savings I can afford to pre-tax contributions in the 401k or 403b, with a goal of potentially converting those monies to Roth at some future date when my marginal income tax bracket is less – as a result of a break in employment, return to school, retirement, etc.
401k and HSA, Better Together.
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This is why you should always check back for answers to posts. You never know when someone will come in with more recent knowledge and/or different perspectives. I’ve been out of the workforce for 18 years so it’s always good to read fresh ideas and how to handle all the opportunities available today.
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It’s been so long since I utilized any of those programs for investing and not for withdrawals it seems like a different world.
Your advice is good although one thing I might caution on is the use of a Roth IRA after the 401k. I invested in a Roth from when it became available and today it is a tidy sum and I intend to use it as a bequest. Having said that, there is no guarantee that in the future, tax laws may change and the Roth could be changed along with other things. It is no secret that Uncle is going to be hurting for revenue in future years and all sources of potential revenue will be considered. That is why I would favor a fund or etf in something like an S&P 500 index where the taxes can be managed down the road when money is withdrawn. I would not use a Roth exclusively.
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