Pick the wrong retirement account and the IRS could take thousands you never had to give them: $10,000 in a Roth IRA growing to $40,000 comes out at $0 tax, while a traditional 401(k) is taxed on the full $40,000 — an $8,800 bill at a 22% rate. Grab your full employer match first, use the Roth while your tax rate is low, and use the 401(k) in your peak earning years — for most people the answer is both. Follow US Money Guide for daily money tips!
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Educational content, not financial advice.
