<prompt> Human: His response was that I should contribute to the roth 401k that they offer due to its higher yearly limit and lack of income limit.Im confused though, as Ive tried to follow the advice of this common image. Did he give me, as well as my coworkers, bad advice?  <response>: Lets face it, what he told you benefits him and his company the most. Its not necessarily bad advice in the sense that those two things he mentioned are true however that doesnt mean that is what is best for you. Its hard for us to say because we dont have all the information like what funds are available in the 401k and what are the expenses. The thing to keep in mind are with a 401k you do have a higher contribution limit 18k a year and you are not limited to how much you make to be able to contribute those 18k. With an IRA the limit is much less 5.5k a year and there are income limits if you make too much you cant contribute to it. But if you plan on contributing less than 5.5k per year and income limits do not apply to your case then an IRA is probably better for you. The main reason is that 401k are limited in investment choices usually around a dozen or so funds to pick from and have higher expense fees. With an IRA you can invest anywhere and buy just about any funds you want and thus have much more freedom. 