Submitted by Icy-Faithlessness466 t3_yhza9b in personalfinance
Research tells me That both accounts used after tax dollars you can so that you can pull money out tax free. The only difference I can see is that Roth IRA allows you to pull money whenever you want and may have better investment options/lower fees. Among other differences: Roth 401k loans, contribution limits (probably missing a few)
My question is does it matter which you invest in? If you’re a fan of tax free growth — why don’t most people do the 401k match, Roth IRA, and then Roth 401k? If you have a Roth 401k, is that better than a Roth IRA?
I’m 24 and In the 24% tax bracket, don’t really have a set age I want to retire yet. So it seems like I should take the 401k match and then focus on Roth 401k? Would that be a good plan?
Werewolfdad t1_iughjd6 wrote
> My question is does it matter which you invest in?
Not usually. Roth 401k is often tax inefficient since income can force you into Roth IRA.
> If you’re a fan of tax free growth — why don’t most people do the 401k match, Roth IRA, and then Roth 401k? If you have a Roth 401k, is that better than a Roth IRA?
Exclusively Roth is highly tax inefficient
> I’m 24 and In the 24% tax bracket, don’t really have a set age I want to retire yet. So it seems like I should take the 401k match and then focus on Roth 401k? Would that be a good plan
Doubtful
Https://www.reddit.com/r/personalfinance/wiki/rothortraditional