Is a Roth 401(k) Better Than a Roth IRA?

by | Aug 6, 2022 | Roth IRA | 41 comments

Is a Roth 401(k) Better Than a Roth IRA?




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41 Comments

  1. Max M

    Can you take out contributions and earnings whenever for Roth 401k or 5 years for both?

  2. Davis J. Miller

    Investments is the best way to find balance between saving and living, This way
    you have your savings

    intact and then live comfortably off the revenue coming in from your investments.

    Financial freedom is possible, you just need to know what to do

    and when to do it. I am a living testimony.

  3. E Black

    Dave,

    When you commented on 401k ROTH vs personal ROTH – I didn't hear you contrast the RMD with the two options. Could you elaborate?

  4. James Scott

    When contributing to a 401k roth, the company match is treated as traditional correct? As in, their contribution grows and will be taxed when you take it out, but your contributions grow tax free due to the fact they have already been taxed.

  5. Juan Gomez

    Should I invest in a 401k non matching or an IRA? Thank you

  6. Davis J. Miller

    Well explained, I can watch this all day, I must say having multiple sources of income is the best peace of mind anyone can get. I started my Roth IRA when I was younger, I also decided to go into investment in stock trading. During covid-19, I stayed home with no work but luckily for me I had my investment profit to fall back to, thanks to my financial expert Suzanne Stephens Ellis, I do not have to do anything, and I get my profit returns in due time. Get her valid information and contact online by simply searching her name online.

  7. J Lin

    still should max out both if able to – and let it compound and take advantage of tax free growth

  8. Lauren C. Edwards

    Nice video, well I am new to online investments, I have been practicing using a demo account. I like to prepare for my future, I wanna start up a Roth IRA account. I don't know much about it or which is better. I am scared that I don't know enough to start all by myself. I am willing to try, but I need help with what to do next.

  9. Ross Bolinger

    From my experience with this, the Roth 401k MATCH is taxable income, but all the growth is tax free.

  10. Zakary Grue

    Fun fact the match is pre-tax either way. A company with give you Roth Matching.

  11. swimbikenrun7

    Open the Roth IRA asap to start the 5 years counting. When you leave your current employer you can roll your Roth funds and any post-tax contributions into the Roth IRA.

  12. Alex Hung

    I max out my Roth 401k and Roth IRA every year. I hope it pays off one day!

  13. Nathan Hedglin

    Anything I’m or above 22% bracket is best for traditional 401k or traditional IRA. Unless the first bracket becomes 22%, you’ll pay less tax in retirement.

  14. M Bez

    Interestingly, many of those who make to much money to contribute to a Roth IRA will always qualify for a Roth 401(k).

  15. Nick M

    The company match for a Roth 401k goes into the traditional side right?

  16. Carlo Coduto

    They didn't mention in order for your roth 401k to be tax free when you withdrawal you must have a roth Ira open for 5 years.

  17. Tommy Tators

    Anyone have input on if the company doesn’t match at all? Would I be better off not investing through company and just get something on my own?

  18. The Opinion Sports Show

    None of this will matter, when the market tanks what this guy has saved will be gone. Should have did an IUL.

  19. ependysi

    such amazing advice on this show i really wish i had learned all this earlier in my life.

  20. Damien Deschain

    Will a Roth 401k directly rollover into a Roth IRA when changing jobs?

  21. Mark Sweetser

    The employer might match in pre-tax

  22. Financial Fast Break

    Most people are in a higher tax bracket mid career, and will be in a lower bracket in retirement. With a Roth, they're paying more taxes during their working years, and saving less as a result.

  23. Black Vito

    I use both Roth 401k and Roth IRA, the $6,000 ira limit is too small

  24. Bucky

    Company match, and then invest in Bitcoin.

  25. Tanya D

    I’m not eligible for Roth due to income level. But I do max out traditional 401k. Ramsey should talk about that. Not everyone can or should contribute to Roth. Eligibility phases out with income.

  26. Dextah

    Get your match in your Roth 401k if available, then max your Roth IRAs. You can select whatever investments you want in your IRA whereas your employer might not have good selections. Also, you can withdraw Roth IRA contributions whenever you may need them. After this, go back and max the Roth 401k.

  27. Justin Flint

    Not true. The 401K likely has higher fees

  28. Daniel Becker

    Does Anthony even listen to the questions? It's like he didn't even hear that the 401K had a Roth option…

  29. Shawn

    ROTH ANYTHING IS BETTER THAN EVERYTHING.

  30. Doom Shallot

    Personally i like IRA better after the employer match. You're not subject to any sudden changes in fees or investment options out of your control. With an IRA, you have way more control.

  31. Patrick Sanden

    The money he puts in through the Roth 401k will be post tax. But the match will still have to be taxed.

  32. Mama Tobz

    I do both. Match at work. My part is Roth. And I max my Roth outside work

  33. Jared Butler

    … there's a big difference on when you can access the account. Roth IRA principal can be accessed earlier than ROTH 401k which can make a big difference if you retire before 59 1/2. While the growth would be same, the actual accounts have some different rules behind them, so please consult a professional and see what works best for your situation

  34. J Smith

    Max 401k
    Max Roth IRA
    Max HSA

    If I’m not good well before retirement I’ll be beside myself.

  35. Locke

    What if your employer matches a Roth IRA? Would you then chose IRA or 401k

  36. Fennec Besixdouze

    It's not true that fund choices are the only consideration for Roth 401(k) versus Roth IRA, the Roth 401(k) also has additional restrictions such as RMDs that make it inferior to the Roth IRA.

    After you get your employer match (whether that's Roth 401(k) or your company only offers Traditional 401(k)), you should immediately turn to maxing out your Roth IRA.

  37. Matthew Andrews

    If you make above a certain amount of money do you even get the Roth option?

  38. AuthorHollingsworth

    I have both of the IRA's, and you never have enough savings. Never!

  39. ImOriginallyGreen

    Get the employer match on the 401k (Roth if available), then Max out the Roth IRA, then back to the Roth 401k for any extra.

    The Roth IRA allows you to access contributions penalty free at anytime. The roth 401k will only allow to access contributions as the proportion of contributions to gains. Therefore the Roth IRA provides a bit more flexibility.

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