How Is A Roth IRA Better Than A 401K? 
How is a Roth better than a 401k ? Well it 's not a matter of better , it 's a matter of different . Both a Roth and 401k give you tax deferred savings , they just differ on when taxes are applied . A 401k allows contributions to go in pre-tax and grow tax deferred . When those funds are withdrawn they are income and subject to taxes in what ever bracket you 're in . A Roth does the opposite , you pay taxes on your contribution and it grows tax deferred , then distributions from your Roth are done without any tax implication . So the question of one over the other is do you think taxes will be higher or lower when you begin to withdraw funds ? 