Mustachians convinced me not to buy. Upping my retirement contributions.

[BuckeyeFinance]

I have about 25k this year to commit to retirement. My employer offers traditional 401k and Roth 401k. I understand the 18k limit of traditional 401k but I'm not sure how the Roth 401k plays in. Should I max out my traditional 401k and max out a Roth IRA at 5.5k?  Is vanguard a good place to open a Roth IRA?

I am 27 and currently have 17k in retirement, about 75% of which is traditional 401k and 25% of which is Roth 401k.

[matchewed]

I would advise maxing out pre-tax accounts. This is using the assumption that you will have a lower tax rate in retirement. That means maxing out your traditional 401k and traditional IRA for the year. Yes Vanguard is a good place to open these things.

[Gone Fishing]

Read the articles linked in my signature line below...

[KCM5]

Yes to Vanguard. Probably a good plan with maxing the traditional 401k. What's your income level? How many deductions do you have (single, married, children?)

[Bicycle_B]

Basically the 18k limit is for contributions to all 401k accounts combined, per year per person. 

So as the previous posters implied, you choose between traditional 401k where you pay tax later but not now, and Roth 401k where you pay tax now but not later. 

[BuckeyeFinance]

Yes to Vanguard. Probably a good plan with maxing the traditional 401k. What's your income level? How many deductions do you have (single, married, children?)

Single no children. Gross income is in the upper 60s.