<prompt> Human: According to this visual depiction of saving order you should just match your employer contribution at first, then after debt is paid off you should max out a Roth. Why is not the reverse? Lets say you dont have debt, shouldnt you max out the 401k with pretax dollars first? EDIT Just a note to thank you all for replying. Really good information.  <response>: Depends on your answer to the Roth or Traditional? question and how good your 401k plan is. From I Have X ... What Do I Do With It?!Why contribute to an IRA? Shouldnt I go back to my 401k?IRAs, since they are opened by individuals with a provider of your choice, are generally better than 401k plans because you have more fund choices. Low cost providers like Vanguard, Fidelity, and Schwab all offer low expense ratio index funds to invest in. However, if you have an excellent 401k plan such as the U.S. Federal governments Thrift Savings Plan or work for a large company that has negotiated institutional rates for the mutual funds in their 401k plan, you may want to do step 5 first and return to your IRA contribution afterwards. 