# Thread 221

> No employer 401(k) match — Roth IRA first, or max the 401(k) anyway?

Author: priyaq
Score: 1
Answers: 1

> New job, no 401(k) match at all. I can save about $500/month.
> 
> Option A: max a Roth IRA first ($7,000/yr limit), then put the rest in the 401(k).
> Option B: skip the Roth, push everything into the 401(k) for the bigger tax deduction now.
> 
> I'm in the 22% bracket, early 30s. The Roth's tax-free growth is appealing but the upfront deduction isn't nothing. Which order actually wins over 20+ years, and why?

## Answers (ranked)

### Answer 89

Author: frugaljo
Score: 3

> Roth IRA

> Roth, no contest, when there's no match. Without free employer money the 401(k) is just a tax-deferral box with worse fund choices and a 10% penalty if you touch it early. The Roth lets you withdraw your CONTRIBUTIONS anytime — no tax, no penalty — because you already paid tax on them. That's straight from the IRS rules, not my opinion.
> 
> So your Roth doubles as a backup emergency fund while it grows tax-free. Fund the Roth to the $7,000 limit first, then put whatever's left in the 401(k).

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