It’s a mixed bag. I like that the Roth IRA is self-directed and usually offers more investment options. But the Roth 401k no only offers a higher maximum contribution (up to $18,000) but is also eligible for an employer match (which will be placed into a regular 401k account). But if you’re in a high tax bracket, you will probably be better off favoring a full regular 401k contribution for tax deductibility, then having a private Roth IRA – which you might have to do through the backdoor, if your income exceeds the limits. Like I say, it’s a mixed bag.

I’d be curious on your thoughts on a Roth 401(k) which is gaining traction with companies. Within the US government, employees are now eligible to contribute to a Roth TSP .

Personally I like to spread my risk and have a 50/50 split between a Roth IRA and Roth 401(k) along with a Traditional 401(k) but like to hear your opinion.