On the first week of your new job, the company's benefits coordinator asks if you want to contribute to its retirement plan. You want to do the right thing and start saving for retirement. But is the company's plan your best option?

A number of accounts are available for your retirement savings. Many companies offer a retirement plan known as a 401(k) (or 403(b) if you work for a nonprofit organization). Then there are individual retirement accounts (IRAs). Here's how to decide where to stash your cash.

Company Plans

For many people, the first priority for retirement saving should be investing in a 401(k). That's because these plans have an unbeatable combination of advantages.

First, your 401(k) contribution is made before you get your paycheck -- in other words, before your paycheck can get taxed. So every dollar you contribute to a 401(k) is a dollar you avoid paying tax on. The more you invest, the lower your tax bill. What is more, your company will deduct your contribution from your paycheck, so you avoid being tempted to spend.