The Best Retirement Account: Ranked by Contribution Priority

I was having lunch with a co-worker a while back, and the exhilarating topic of retirement accounts came up. Our employer offers a generous 50% 401K match, which led me to assert, “If you have the cash flow to do it, you’d be crazy not to make the maximum 401K contribution.” co-worker: “I disagree. I would always max out a Roth IRA before contributing to a 401K.” “Say whaaaaaat?!” After further discussion, I gathered that this co-worker thought that Roth accounts have some sort of no-tax super-power to them, which made them superior to traditional...

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