Consider This Retirement Account if You're Early in Your Career
When it comes to retirement accounts, your three primary options are the 401(k), the Roth IRA, and the traditional IRA. A 401(k) plan is the most common because it's offered through many employers, but ideally, it shouldn't be your only retirement account. A 401(k) is good because you contribute pre-tax money and it lowers your taxable income for the year, but there are some limitations.
Roth IRAs and traditional IRAs are not tied to an employer and must be opened on your own. For tax year 2022, the maximum IRA contribution for both accounts combined is $6,000 ($7,000 if you're 50 or older) and is done with after-tax money. They each have their own pros and cons, but there is one key thing to help you determine which one you should be using: Taxes.
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Source Fool.com
