Roth IRA vs 401(k): Which One Makes You Richer? (2026 Guide) Choosing wrong could cost you $100,000+ in retirement. Let's get it right. The Basics 401(k): Employer-sponsored, pre-tax contributions, pay taxes in retirement. Roth IRA: Individual account, after-tax contributions, tax-free in retirement. 2026 Contribution Limits 401(k): $24,500/year ($32,500 if 50+) Roth IRA: $7,500/year ($8,600 if 50+) Which Should YOU Choose? Choose 401(k) if: Employer matches (FREE money!), higher income now than in retirement expected. Choose Roth IRA if: Young/low income now, expect higher taxes later, want tax-free withdrawals. Best answer: BOTH if you can! Max employer match first, then Roth IRA. The $100,000 Difference Example: $500/month for 30 years at 8% return: 401(k): $745,000 (but pay taxes on withdrawal) Roth IRA: $745,000 (TAX-FREE!) If tax rate is 25% in retirement, Roth saves you $186,000 ! Common Mistakes Not getting full employer match (leaving free...