Roth IRA vs. 401(k): Which Should You Choose?

This article will compare the benefits of choosing a Roth IRA vs. 401(k) and help you decide where to save and invest for the long run.

Roth IRA vs. 401k

Early Withdrawal Rules

Pulling money out of your retirement comes with a penalty. That is not always the case with a Roth IRA since you can withdraw contributions at any time.

Annual Contribution Limits

A Roth IRA also has a lower annual contribution limit than a Roth 401(k). 

Roth IRA Income Limits

You will not be able to contribute to a Roth IRA if your income exceeds certain thresholds

Required Minimum Distribution Rules

Required Minimum Distributions (RMDs) are something to be mindful of with 401(k) plans.

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