[Fern]

I would continue to contribute at least the minimum needed to get any company match on the money in your 401k...that's something the IRA can't give you. Both the IRA and 401k are tax-deferred vehicles, so either one is good, i think, altho as sweeps said, one advantage of the IRA is that you have much more choice about where to invest the money, whereas at work you are limited by your company's menu of choices.