<prompt> Human: Hi all, Quick Question. I have read the I have X post, but I wanted a little more detailed information. I work for a Fortune 500 company so I have a nicely negotiated 401K through Fidelity I think?. Im 25, male, and married. Im putting 12 before company match into the NTFocus 2055 target fund. It has an ER of 0.09 not a typo. Company match is 4. I just got a 4 raise so my question is: do I increase my 401K contribution since Im not maxing out my 401K yet or do I start to contribute to a Roth IRA? Ive started to become concerned that I wont be able to retire in my mid-to-late 50s early 60s if I dont contribute to an account I can access at that age. But at what point do I divert funds from 401K to Roth IRA?Should I focus on maxing out my 401K before worrying about Roth, or should I try to tackle them both at the same time? Thanks! I should add I have a 6 month emergency fund and my only debt is a 10K car loan at 2.45 with 3.5 years left. Payment is 250month.Assistant: This is widely accepted as the best practice: Human: Ive read that chart, but I was under the impression the reason that the chart is widely accepted is because most people dont have access to 401K funds with low ER. So it makes more sense to invest in a Roth with a low ER. But I DO have access to a 401K with a low ER. Im just trying to make sense out of all of this. Assistant: Partly, but the advantage of the Roth is that after the money is in, it grows tax free, whereas the traditional 401k gets taxed on withdraw. You can also take money out of a Roth 10k I believe for a first time home buyer. There are many advantages that a 401k does not offer. You just need to decide whats right for you. Everyone is different.Human: Ohhh ok, I didnt realize the full advantage of the Roth IRA. I didnt know the gains were not taxed. Thank you so much for taking the time to respond. I need to do more research. I just wanted to have a jumping off point and I thought this would be a good place to start. Thanks again!  <response>: You were correct previously. Roth grows tax free but you have to pay taxes initially so your starting balance is smaller. 401k is taxed on withdrawal but your starting balance can be larger pre-tax.All else being equal tax rates now and upon withdrawal, funds, and initial amount to save, you will end up with exactly the same amount of money. See There are other benefitsdisadvantages. For a comprehensive list see I also have access to great funds in my 401k: 0.0172 for SP 500 also not a typo. I max out 401k before Roth IRA. 