Start with employer matching
If an employer matches contributions, calculate how much you must contribute to receive the full match. Vesting rules and plan fees still matter, but an unused match is an important cost to recognize.
Compare taxes now and in retirement
Traditional 401(k) contributions may reduce current taxable income, while qualified Roth IRA withdrawals can be tax-free. The better mix depends on eligibility, marginal tax rates, and uncertainty about future tax rules.
Build a contribution order, then revisit it
A common planning sequence is enough 401(k) contribution to capture the match, then compare IRA eligibility and plan quality before adding more. Revisit the order after income, employer benefits, limits, or goals change.
Test your scenario
Use the related calculators
The guide frames the comparison; the calculators let you enter your own numbers and test alternatives.