Roth IRA vs Traditional IRA vs 401(k): Which One First?

Roth IRA, traditional IRA, or 401(k)? Here's exactly how each retirement account works, which one fits you, and the simple order to fill them, explained with clear visuals. You'll learn: • The one question behind every retirement account: pay tax now, or later? • Why Roth and traditional give the same result at the same tax rate, and when each one wins • How the 401(k) employer match works, and why skipping it could cost almost $480,000 • 2026 contribution limits: $24,500 for a 401(k), $7,500 for an IRA • Roth IRA income limits for 2026, and three reasons people love the Roth IRA • The money ladder: match first, Roth IRA second, more 401(k) third • 3 costly mistakes to avoid • How Maya, earning $60,000, could reach about $1.56 million ⏱️ Chapters 0:00 Roth vs Traditional vs 401(k): the basics 0:32 1. Tax now, or tax later? 2:05 2. The 401(k) 3:10 3. The IRA 4:01 4. Why people love the Roth IRA 4:50 5. The order to fill them 5:41 6. 3 costly mistakes 6:32 7. Putting it all together 7:22 Recap 💬 Which account are you starting with? Tell me in the comments. 📊 Sources and assumptions • 2026 limits from the IRS: https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500 • Roth IRA income phase-out (2026): $153,000–$168,000 single, $242,000–$252,000 married filing jointly • Growth examples assume a 7% average annual return, compounded yearly, with contributions at the end of each year. Returns are not guaranteed. • The 10% early-withdrawal penalty generally applies before age 59½; some exceptions exist. This video is for educational purposes only and is not tax, legal, or financial advice. Everyone's situation is different, so consider talking to a qualified professional. #rothira #401k #retirement #personalfinance #investing