What Is The Difference Between a 401(K) and ROTH IRA?

A 401(k) offers you tax benefits, either tax-deferred or taxed on that original side. Essentially, you can push off the taxes, or, if you use a ROTH IRA, you won’t be taxed in 20 or 30 years when you retire. A 401(k) only allows a maximum employee contribution of $19,000 a year and a ROTH IRA only allows a maximum of $6,000 a year. Here is what’s important. If your employer offers an employer match, meaning for every dollar, up to 5% (this varies and your employer may not offer a match) of your income, they match. So if you make $10,000, and invest $500, your employer will also put $500 into your 401(k) for example. THAT’S FREE MONEY! Don’t waste it. If your employer offers a match, make use of that.

That's what we cover, and SO MUCH MORE! As we bring on Larry Sprung.

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Mitlin Financial

Books Mentioned in the show

The Richest Man In Babylon - Original Edition

Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones

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