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Author: gogreengo Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: The Wisdom of Suze O Date: 2/24/2004 2:06 PM
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On the "401(k) vs. Roth" front, there is VERY little question that one should first fund the 401(k) to whatever your employer matches. If a Roth is right for you, it might outperform the 401(k) from a tax standpoint after you have the free money from your employer. There is no tax benefit that will beat the instant return a substantial (say, 25%+) employer match provides. Choosing not to fund a 401(k) in favor of a Roth would only make sense if the 401(k) is not matched.

She states in her article that you should fund your 401k enough to get the free money from your employer. Her main point is that the money you take out of a Roth during retirement is tax-free, while the money you take out of a 401k is not.
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