[Jimbo232]

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Are you also contributing to a Roth IRA? Whether you want to (or are able to) save 25% of your income is up to you. But I would contribute to your 401K up to the company match, then contribute to a Roth IRA, so you have tax diversification. If you want to contribute more after your Roth is maxed out, then put more in your 401K.

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QFT. For most people the optimal retirement savings strategy is to:

1) Contribute enough to your 401(K), 403(B), TSP, etc. to maximize the company match
2) To diversify your tax benefits max out Roth IRA to IRS limits ($4K in 2007, $5K in 2008)
3) If you have extra money to save and the desire to do so contribute additional funds to your 401(K), etc. up to the IRS max ($15.5K in 2007, $16K in 2008)
4) Funnel any additional retirement savings into a regular taxable brokerage account. A low cost index fund is a pretty tax efficient investment to hold in a taxable account.