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Author: isogyre Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: Which is better: 401(k) or Roth IRA? Date: 10/5/2000 10:23 AM
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I have budgeted $6,000 per year for retirement savings. It is currently all going into my 401(k), and I contribute about twice as much as I need to in order to receive the maximum matching contribution from my employer.

Would it make more sense to contribute $2,000 per year to my Roth IRA and only contribute $4,000 to my 401(k)? I will still get the full employer match.

In other words, which is better: lowering my current taxes through higher 401(k) contributions or paying higher taxes now and maximizing my Roth IRA contributions?

I am not planning to retire for at least 40 years.
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