The Oil Drum

in my experience a 401 k can be a benifit because you probably really wont miss the money that goes into it      but the particular 401 k i am in only has mutual funds for investment options   my ira has done a lot better even with the (megar) employer match      if you work for a co that even offers a 401k  you may be prohibited from investing in an ira    

Are you getting an employer match?  What investment options do you have? What stage in life are you?
The traditional view was that putting money away in a tax-deferred account was a smart move because you would be in a lower tax bracket when you retired, assuming tax rates stayed roughly the same.  That assumption may not be valid in the future, according to many of those who notice the looming Social Security/Medicare crisis and extrapolate what it might take to pay for it.  See Burns and Kolitkoff, "The Coming Generational Storm."  So it's not as easy a question to answer as it used to be.  

RussianCrude:  401k: good or bad idea?  That really depends upon what your situation is.  My advice is to get out of debt as soon as you can to avoid becoming an endentured servant to the money changers, oops, I meant banks.  (Fractional reserve lending and Uncle Ben make my blood boil!)  

If you have any debts, pick the one with the highest interest rate, pay that one off first and then pay off the rest of your debts in decending order of interest rate.  If you don't have any debt, go for Treasury Inflation Protected Securities (TIPS) if you're a conservative investor but only for the medium term.  These may just become worthless if the govt. can't pay it's debts.  Otherwise pick up as much silver and gold as you can.  That's just my humble opinion and please note that I'm a serious Doomer.  If you ask 10 different people you'll get 10 different answers.

it's different for each person, but so long as your employer matches you I'd milk it for all it's worth.  Just remember to diversify ALOT (especially since we all know that stocks really AREN'T gonna be going up forever and ever).

401K with matching from your employer is a good deal for now.

Adding to what others have said:

• Diversify your holdings.
  
• Financial advisors will advise young folks to play risky.  That is "old" advice that you should perhaps not follow.
  
• Put some $ in conservative stable funds, some in diversified bonds, some in international funds (stay away from emerging international right now...mature international funds have done well).
  
• I also have done well in midcap value funds.
  
• DO NOT put all your eggs in one basket (especially energy stocks).
  

For me, good idea, especially this year. I just upped my withholding to 50% 'til the end of the year. I'm gonna withhold enuf that I won't have to pay any income tax this year. Let somebody else pay for that effing war.
(Have a 2K credit for solar, will get another "poor person's credit" for putting money in my IRA.).
Not with my money, this year.

Another rule:
Stay away from your company stock in your 401K. If your company gets in trouble and you are canned - then you get screwed twice!