401k or Roth IRA

[justjenn]

I'm 25 and just starting to save for retirement. My employer offers a lump sum contribution to the 401k at the end of the year, regardless of how much I put in. I was just wondering if I should continue to contribute to my 401k or to use that to fund my Roth IRA

thanks!

[Revelry]

Congratulations!  You're ahead of the curve by saving already.

How much are you able to save?  You can contribute $18k of your own pre-tax money to the 401k, so unless your company chose crappy high-fee funds that's superior to the $5.5k you can put into an IRA.  Even better would be to max out both.
What are your reasons for using a Roth instead of traditional IRA?  It's been described well at MadFientist and GoCurryCracker, but you will reach FI faster with traditional.  There are good reasons for using a Roth though.

Good luck on your journey!

[27y/oTennesseeRetiree]

I max out both. You can do it!

[GlassStash]

If you can't do both, 401k is probably the way to go. You will have not only saved on federal income tax, but state and local income tax too.

[justjenn]

thanks everyone!

Revelry - I chose the Roth because it's easier to take money out of it. Not that I'm planning to, but I just like the idea of knowing that I can access it if I really need to. The field I'm in relies on federal grants, so there's not a lot of job security. I have an emergency fund, but I feel better with a second safety net so to speak.