Confused about 401k, IRA, and Roth IRA? Learn the key differences and discover the optimal investment order for your financial future in this 2020 guide.

Here, we'll compare the two and help you determine which one best meets your needs. The best features of a Roth IRA Each ...

A n IRA conversion to Roth is a popular pre-retirement or early retirement move. Roth IRAs offer several benefits that ...

Roth IRA: 401(k) Contribution limit: $7,000 until age 50 when catch up contributions allow for a total of $8,000: $23,000 until age 50 when catch up contributions allow for a total of $30,000 ...

The good news is this: Choosing between a Roth IRA and a 401(k) is not an all-or-nothing scenario. There's no rule saying you can't invest in both, and that may be precisely what you decide to do.

For example, if you have $60,000 in taxable income and contribute $5,000 to a Roth IRA or Roth 401(k), you still have $60,000 in taxable income, and your take-home pay is reduced by $5,000.

Unlike a traditional 401(k) or IRA, where withdrawals are taxed as ordinary income, Roth IRAs provide tax-free withdrawals in retirement, provided you meet the five-year rule and are over 59½.

The Roth IRA is a favorite among personal finance experts as a top choice for retirement savings.But a Roth 401(k) could be an even better option for many people.

If your employer does not offer a 401(k), then your best option is a Roth IRA. “The Roth IRA will give you the same tax benefits on your growth as the Roth 401(k),” Meyer said.

A Roth 401(k) and a Roth IRA sound similar — and they are. Contributions are made after taxes — meaning your taxable income isn’t reduced by the amount of your contributions when you file ...

A Roth IRA allows penalty-free and tax-free access to your contributions at any time, but a Roth 401(k) can give you access to up to half of your account, including the growth.

A Roth IRA and a traditional IRA both have unique benefits. Getty Images/iStockphoto If you're looking to start investing but don't have access to an employer-sponsored 401(k) - or if you've maxed ...