A 401(k) and a Roth IRA are not enemies. They are just different buckets with different tax rules, contribution limits, and access points. For many people, the first move is simple: do not leave an employer match sitting there.
Start with the employer match
If your job offers a 401(k) match, contributing enough to capture it is often the first retirement move to consider. It is part of your compensation. Skipping it can be like declining a piece of your paycheck.
Use the Roth IRA for tax flexibility
A Roth IRA is funded with after-tax money, and qualified withdrawals in retirement can be tax-free. That can be attractive if you want more tax flexibility later or you expect your tax rate to rise over time.
The 401(k) may let you save more
Workplace retirement plans often allow much larger annual contributions than IRAs. If you are trying to put away serious money, the 401(k) can do more heavy lifting.
The best order depends on your plan
Fees, investment choices, income limits, tax bracket, match rules, and cash flow all matter. A common order is: get the match, build an emergency cushion, consider Roth IRA contributions, then increase 401(k) savings if you can.
If your employer matches 50% up to 6% of pay, try to understand that match before deciding where your first retirement dollars go.
Good places to double-check
Retirement-account rules change, and contribution limits can depend on tax year and income. Check current IRS guidance and your employer plan documents before making final decisions.