Which is better right now a 401k or an IRA?

I;m 27 and l have been contributing in a 401k for about 1yr 1/2 now. l invested in the FidelityFreedom 2050 plan and l have been losing more than what the company is matching. I am investing 10% currently of my salary.

The economy is so terrible right now l feel like l might as well take my moeny out and stash in a regular bank account.

401k wit the match is best as the market will come back and you are buying at garage sale prices right now. You may think you are loosing but you are not since you are getting more shares that do have market fluctuations but you will be much better off for staying an putting all you can in at your age

If you take your money out..there will be a good size penalty. Keep it where it is..it will all turn around within the year.

In a 401k, u have the corporate matching funds. Usually it is between 3% & 5%. Although u have plenty of time until retirement, u r concerned about losing ur money. You need to diversify ur 401k accounts. u should have a mix of cash, bonds, & stocks (choice of small, mid cap, large cap & international). You will have to do some research on what the funds r doing. Even if u keep ur funds in a 401k cash account, just the employer match alone will most likely surpass any savings u would have in an IRA currently.