As 401(k) Matches Disappear, Savers Must Take Up Slack:
Although you can save as much as $16,500 a year ($22,000 if you're age 50 or older) in a 401(k), a Roth IRA limits you to just $5,000 a person — or $6,000 if you're older than 50. Many people need to save more than $5,000 a year, especially if they are trying to catch up after neglecting saving when young. If you are married, each spouse can put as much as $5,000 into a Roth IRA if one is working, but even $10,000 a year might not be enough. (Try the "ballpark estimate" at http://ping.fm/10Fyv and check income limits for contributions at http://ping.fm/S6AKo)

Consequently, Stevens said people who need to do significant saving could use Roth IRAs to the max, as well as a 401(k). This provides an additional benefit. Anything you put into a 401(k) gives you an immediate tax break, so you don't have to dip as deeply into your pocket to come up with money to save. The Roth IRA doesn't give you that benefit. But a Roth offers a benefit in retirement that is better than a 401(k): Anything you remove from a Roth IRA during retirement is yours, free and clear. On the other hand, when retirees remove money from a 401(k), the withdrawals will be taxed.

Still, beware of the inclination to procrastinate if you are considering a Roth IRA. Sheryl Garrett, a financial planner and founder of the Garrett Planning Network, suggests opening the IRA immediately at a low-cost mutual fund company such as Vanguard or T. Rowe Price. She advises savers to set it up so money is removed automatically from each paycheck and deposited in mutual funds. Funds to consider, she said, if you want to make small monthly contributions are T. Rowe Price Equity Income Fund or T. Rowe Price Standard & Poor's 500. The fund is invested 100 percent in stocks. More conservative funds suggested by Stevens are Pimco All Asset or Permanent Portfolio.

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