In general, the best way to think about tax-advantaged retirement accounts is to see them as a gift (in the form of tax savings) from the government. If you have additional money to save after your 401(k) contribution, we believe you should contribute to an IRA before investing savings in regular taxable accounts.
Our recommended priority for retirement savings is:
1. Contribute to a 401(k) up to the employer match because it’s free money
2. Max out an Individual Retirement Account (IRA)
3. Max out your company 401(k)
4. Invest any remaining savings in regular taxable accounts