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Originally Posted by Cynthetiq
okay... here's quick and dirty info:
401(k) is for retirement, you cannot "get it back" without heavy penalties. Once you leave the company you may be asked to roll it over into an IRA. You are contributing PRETAX dollars instead of AFTER TAX dollars. So if you were to us an IRA instead of an 401(k) you'll be using AFTER TAX dollars, and then when you have to pay income tax when cash out the IRA you'll again pay tax one more time. Double taxing.
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Rolling over from a 401(k) to a regular IRA is a tax-free event, better luck next time.
Regular IRA accounts also use pretax dollars. ROTH IRA accounts are post-tax contributions.