401(k) vs Roth IRA: A Simple Decision Tree

Three questions:

1. Does your employer offer a 401(k) match? If yes, contribute at least enough to capture the full match — that's free money. 2. Are you in a high tax bracket today? Then prioritize traditional 401(k) (pre-tax now, taxed in retirement). 3. Do you expect higher income in retirement? Roth IRA (tax-free in retirement) wins.

For most people the ideal order is: 401(k) up to match → max Roth IRA → back to 401(k) → taxable brokerage. Run the numbers in our 401(k) and Retirement Planner.