should I putmoreinmy roth ira or my company's 401k?

Answer 1

Always do the Roth first. It is after tax dollars and taxes raise each year. "The Roth grows tax-FREE. If you invest $3000/year from age 35 to age 65, and your mutual funds average 12 percent, you will have $873000 tax-FREE at age sixty-five. You have invested only $90000 (30 years x3000); the rest is growth and you pay no taxes." (From The Total Money Makeover by Dave Ramsey.)

If you do the 401k, when you retire the money be taxed at tomorrow's rate.

Answer 2

If your company will match your 401k contributions, then put money in your 401k up to the matching limit. This is a big instant return on your investment (a lot of companies match 100% of your contributions up to a certain amount). After that limit, put your money in a Roth IRA. True, the money is taxed going in but a Roth still makes the most sense for most people (not everybody though). In a Roth IRA the money won't be taxed when you take it out. Tax rates are reasonably low now. I see the tax rates going up in the medium to long term future.
Except for employers matching your 401k, IRA's are much better than a 401k.

Answer 3

The Roth is often a better choice to max out. You may have to put post-tax dollars in, but not having to pay taxes upon withdrawal makes much more sense in that you will be putting in less than you take out...so willinfact pay less taxes. Since your Roth is maxed at 4K, above that use your 401K. Also there is more flexibility with a ROth since you can choose any fund you wish....where as a 401K is somewhat alimited by the options you employer offers.
If you employer offers a match, I would put up to that amount in the 401K, then above that fund the Roth. (ex: your company matches up to 5%...put 5% into your 401K, above that fund your roth)

Answer 4

Great question!

I would recommend putting as much money in your 401K as your company matches.

I would contribute the Max amount in the Roth IRA ($4,000) and then place the rest in the 401K.

Both of these vehicles will help you achieve success during retirement (tax and no tax income)

Answer 5

If your company matches your contribution, in whole or in part, and the 401k account is placed with a reputable investment vehicle, the obvious choice is to go with your employer's plan. Their matching contribution is "free money." For instance, my employer offers 50 cents on the dollar up to 6% of my gross pay, and we are immediately vested in the entire account. That means that every dollar I contribute has an IMMEDIATE return on investment of 50%. Just try to do better than that in a Roth!

Answer 6

I vote for the 401K, because it's taken out BEFORE it gets taxed as income, so you've already made X%(whatever the tax rate is for you) before you've even earned anything on your investment.
Then you get earnings on that extra amount as well.

And especially so if your employer matches at all (mine doesn't, unfortunately... can I come work where you work?)

Answer 7

I agree. 401k is the way to go. Depending on how well you company contributes, your age, and % of contribution you could be a very wealthy retiree!