401K，traditional IRA, Roth IRA

401K，traditional IRA, Roth IRA 是三個不同的instrument， 對嗎？ 我現在收入不高，稅率不高，是否現在存Roth IRA， 現在交稅，比以後交稅要劃算呢？
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401K: Only companies can do that, you contribute a percentage of salary, they have some mutual fund to buy. Traditional 401k is tax deductible, but pay tax when you withdraw after retire. There is an Roth option, meaning paying tax when you contribute, but tax-free when you withdraw. Annual limit is about $15K. You can transfer this to an IRA after you leave the company.

IRA: individual retirement account. You have to do it yourself. Only $5000/year. Again traditional and Roth: before and after tax contribution, taxable and tax-free withdraw.

Personally, I like Roth option for both 401K and IRA, if possible, simply because it's tax-free at withdraw. Imagine that you can get annually $50K from Roth IRA after retirement, tax-free.

Hope this helps.
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