Why Is A Roth IRA Better Than A 401K? 
A Roth IRA isnt better . A Roth IRA is different . Contributions for a 401 -LRB- K -RRB- reduce your current income tax . Contributions to a Roth IRA do not . Distributions from a 401 -LRB- K -RRB- are fully taxable as ordinary income . Distributions from a Roth IRA are not taxable at all . The limits to how much you can put into a 401 -LRB- K -RRB- are quite generous . The limits to contributions to a Roth IRA are restrictive . There are taxes and possible penalties if you withdraw money from a 401 -LRB- K -RRB- prior to age 59.5 . You can withdraw from the capital invested from a Roth IRA without tax consequences . There are advantages to both . 