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Traditional 401k Vs Traditional IRA Vs Roth 401k vs Roth IRA. What's the best?

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“It depends”. Max 401k based on your tax and retirement goals, then IRA accordingly

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As long as your marginal tax rate is under 20%, you should contribute to a Roth 401k, above that you should contribute to a traditional 401k. In either event, you should seek to max that every year. Once that is maxed, you should probably contribute to a Roth IRA forever IF you ever expect to exceed traditional IRA contribution limits (eg: if you think you will ever in your life earn more than $118k/year). Given your line of work, its reasonable to expect to hit that limit therefore I recommend the Roth IRA, you may have other plans. (FWIW, the recommendation for Roth IRA is so that you do not get ensnared in Pro Rata rules down the line when you need to backdoor your Roth IRA contributions).

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If just starting out, Roth all the way. There are plenty of online calculators that will show you the differences between them. Even over a 20 to 25 year period, the Roth cam end up being worth 10 to 20 percent more than the traditional IRA. And that is even using the same rate of return for all the scenarios. If it is late in the game for you, then the traditional may be better.

SM1 - great advice. I didn’t know this when I stared out, and I’m looking for ways to grow my Roth IRA now while having a traditional IRA

Roll your TIRA into your 401k. Accenture has a great 401k plan, I spent 14 years there. That frees you up to make backdoor Roth IRA contributions unencumbered by Pro Rata taxes.

That’s.... brilliant. Thanks!

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