401(k) vs Roth IRA — Complete Guide
401(k): pre-tax contributions (tax break now), employer match free money, $23,000 limit (2026), required minimum distributions (RMDs) at 73. Roth IRA: after-tax contributions, tax-free growth, $7,000 limit, no RMDs, income limits apply. Most should contribute to both — 401(k) up to match minimum, then Roth IRA, then back to 401(k).
401(k): pre-tax contributions (tax break now), employer match free money, $23,000 limit (2026), required minimum distributions (RMDs) at 73. Roth IRA: after-tax contributions, tax-free growth, $7,000 limit, no RMDs, income limits apply. Most should contribute to both — 401(k) up to match minimum, then Roth IRA, then back to 401(k).
Contribution limits and rules
This section covers contribution limits and rules. For the practical framework, see our Retirement Investing hub and our blog for related analyses. Read on for context-specific guidance.
Tax treatment differences
This section covers tax treatment differences. For the practical framework, see our Retirement Investing hub and our blog for related analyses. Read on for context-specific guidance.
Optimal contribution order
This section covers optimal contribution order. For the practical framework, see our Retirement Investing hub and our blog for related analyses. Read on for context-specific guidance.
When to use each
This section covers when to use each. For the practical framework, see our Retirement Investing hub and our blog for related analyses. Read on for context-specific guidance.