Roth IRA vs 401(k)

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Retirement feels far. But one choice today = $100K difference at 65.

I maxed both. Here’s the 2025 guide — limits, taxes, and my strategy.

401(k): Employer Match = Free Money

  • 2025 Limit: $23,500
  • Match: 100% on 3–6%
  • Taxes: Pre-tax (pay later)

Example: $50K salary → 6% match = $3,000 free.

Roth IRA: Pay Taxes Now, Retire Rich

  • 2025 Limit: $7,000
  • Income Limit: $161K single
  • Taxes: After-tax (withdraw tax-free)

My Strategy

  1. 401(k): Up to match ($3,000)
  2. Roth IRA: Max $7,000
  3. Back to 401(k): Rest

Where to Open

  • Fidelity – Zero fees
  • Vanguard – Low-cost index funds

Alex Rivera | X: @pennywiseusa

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