<prompt> Human: Im looking to put about 3k to start an IRA account but I have some questions:-Traditional or Roth? Ive been reading that Roth is better pay tax now instead of later, but what are some of the negative? What happens if I somehow make above the income limit 122K i think in the future?-Where should I open? I already have a brokerage account with Fidelity, but Ive heard great things about Vanguard. And their funds are cheaper with lower expensefees-401K and IRA: I have a job offer that has a company 401K. Should I have both or just one?-Any other advice or tips?Info: 22 years old, only 5k in student loansThanks!  <response>: Heres my general primer of things Ive learned over the years and to have you avoid the stupid mistakes I made when I was younger and started my IRA. Contributions to IRAs are limited to a yearly maximum, on EARNED INCOME ONLY. That is, if your earned income last year not capital gains from investments or savings was 2k, you can only put in 2k, even if the yearly limit was 5k. Yearly contribution limit is divided between IRA and Roth IRAs. Contributions to 401k has a separate limit. Contributions to traditional IRA are pre-tax dollars, so it reduces your taxable income, thus you pay less taxes today, but you will pay taxes on withdrawals of contributions and gains after 59.5. So this makes sense if you expect to have a low tax rate when you plan on withdrawing money. Contributions to Roth IRAs are post-tax dollars, so it will not reduce your taxable income, but your withdrawals for contributions and earnings will be tax free after 59.5. So, if you expect to have a higher tax rate when you start withdrawing, this makes more sense. Early Withdrawals on Traditional IRA contributions are subject to a 10 penalty Income taxes at your ordinary income tax rate. Withdrawals after 59.5 are subject to income tax at ordinary income tax rate. Early Withdrawals on Roth IRA contributions are tax free. Early Earnings withdrawals are subject to 10 penalty and taxation at ordinary tax rate. -Where should I open? I already have a brokerage account with Fidelity, but Ive heard great things about Vanguard. And their funds are cheaper with lower expensefeesI like Vanguard. I dont mess with my Roth IRA too much so I want low maintenance fees. Plus they have a good variety of funds. You can also set up a brokerage account for your IRA if you want trade stocks in it. -401K and IRA: I have a job offer that has a company 401K. Should I have both or just one?401ks have a different yearly maximum limit. Contributions are taken out of your payroll, so it will lower your taxable income pay less taxes now and keep more of your money. The other benefit is that some companies allow matching of contributions to your 401k, so this is free money. Generally speaking you want both if you make enough income, with priority to your company 401k at least to max out their matching. 