What's better for retirement savings: a 401(k) plan or a Roth IRA?
Answer:
If you need tax deductions, a 401K or traditional IRA is best.
If you company does a matching amount on your 401K, put in the max they will match, it is free tax deferred money.
If you don't need a tax deduction, a Roth IRA is good.
You can do both a Roth IRA and a 401K.
both.
the 401K could be contributed to by both you and your company. (whom you work for).
the ira can be managed by yourself.
if you can do both, do it.
if you can only do one, the 401k is better, higher returns and you can invest more.
youre limited to 2k per year, (or maybe a little more nowdays) on the ira
Usually 401k's as they usually include employer matching. The additional funds will definitely be more after X years than the tax savings of the Roth. I say both. Max out the % your employer matches (6%) and max out the Roth (2-3k per year?). A diversified portfolio is always best.
If your employer is matching definitely do the 401k. You'll not only get free money from your employer, but you'll also get the deduction. Even better, if your employer offers the new Roth 401k I'd do that, you'll get the best of both worlds.
If you can afford it, fund the Roth IRA, also.
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