<prompt> Human: Ive been reading rpersonalfinance since I started my new job last year. Im 23 to give some reference. My company provides a 401k with 6 match. I recently opened a Roth IRA. In total, Im on track to save about 27 of my pre-tax salary this year. I know the general consensus on the site is to contribute enough into the 401k to match and then try to max your IRA before contributing more. I looked into the returns and expense ratios of the funds, and Im a little confused on the logic. I have linked a comparison snapshot of the comparable index funds available in each retirement account. I color coded it by category. It appears the returns are higher and the expenses are lower in the 401k account except for the total market account where the returns are slightly higher but the expense is still 9x the 401k SP 500 index. That makes me think I should contribute as much as I can into the 401k before contributing to the IRA. Are there nuances that I am not getting?  <response>: That general logic is based on the fact that more often than not the investment choices in ones 401k plan are less varied and more expensive than one could find by shopping their own Roth IRA. In your case you appear to have very good choices in the 401k assuming that the ER constitutes all of the costs you pay so that changes things a bit. The question now comes down to a matter of tax rates. If you are in a low tax bracket now, that weights things more heavily towards choosing the Roth IRA. If you are in a moderate to high tax bracket say 25 or higher that weights things towards the 401k. The Roth IRA does bring some other advantages like the ability to withdraw contributions at any time with no penalty, and slightly easier access to it in the long run. Its also often well-advised to split your tax liabilities up by having some funds in a Roth account and some in a traditional because despite our best guesses today we really have no idea what the future tax landscape will look like. 