... now I'm a little more confused. I thought the point of a 401(k) was just to get you to invest in an IRA through your company because they'll match X% of it and nobody was investing towards their retirement so the government mandated it
So let's say I have a million dollars to invest, and I can choose between a 401(k), a Roth 401(k), an after tax 401(k) (I have something like this at work), a normal IRA, a normal Roth IRA, and a normal after-tax account
How much can I put into each, maximum?
50k 401(k), 5k IRA, 5k Roth IRA?
How much in the after-tax account?
Is there any benefit to actually controlling the individual accounts? Like, I figure if I have that level of control and power, I might as well just be a day trader - it's easier mentally to just dump in the S&P500 knowing it will get 7 ish % over my life
In IRAs, you can put $5,500 per year. This can be any combo of Roth or traditional. So you could do $3500 traditional IRA and $2000 Roth IRA. Or $5,500 traditional IRA and $0 roth IRA. They have to add to no more than $5,500.
For a 401k, YOUR contributions are limited to $18,000 per year. Same deal as above- roth or traditional, it has to add to no more than that limit. How you skew that is up to you- all in one, all in the other, something in the middle (ie, $10k in a traditional 401k, $8k in a ROTH 401k).
The $50k limit is EMPLOYER limit- your employer cannot contribute more than that on your behalf (ie, with the employer match and etc).
So as for why you would want to contribute to an IRA... well, for one, $5,500 more of tax advantaged space. If you do a traditional and qualify for the deduction (ie, don't make too much) that is $5.5k less you're being taxed on. Awesome. Or, if you qualify to contribute to a Roth IRA, you can have your investments grow tax free. Also awesome. Either way, totally worth doing.
ALSO! If you can get your AGI low enough, you can qualify for the Saver's Credit. Ex, AGI below $61k (I think it's like $37-61k, don't remember currently though) you get 10% of your IRA contribution back as a credit up to $200. That is awesome. Free money.
There are a LOT of reasons not to be a day trader. If you feel like you wouldn't be able to resist day trading because an account allows you too, I really worry about what you do with credit cards, haha. Sounds like some self regulation practice is in order!
It sounds like a read of J Collins' Stock Series is in order, SO much good info there:
http://jlcollinsnh.com/stock-series/Most importantly though, this is the part that addresses the topic at hand:
http://jlcollinsnh.com/2015/06/02/stocks-part-viii-the-401k-403b-tsp-ira-roth-buckets/