Many people are just not aware they can use their employer plan (401k, 403b, 457, TSP),  and still contribute to an IRA each year.  They fund their employer plan and completely miss out on the IRA.  They key to retirement will be to fund both of these plans each year.  Remember the Roth IRA does have income restrictions ($95,000 single, $150,000 married filing jointly), but a traditional IRA can be used at any income level!  The Investment Company Institute released a report this week that indicated only 17% of households contributed to IRA accounts in 2004.  

If you're above age 50 you can take advantage of the "catch-up" provision.  This allows you to contribute an additional $500 for 2005 and $1,000 for 2006.  Only 6% of eligible households made these contributions in 2004.

The IRA is much more flexible than any 401k so please take advantage of this account!

Read the Invesment Company Institute report.

The Role of IRA's in American's Retirement Preparedness