Is it better to max out my 401(k) or contribute to an IRA?

A common priority order captures the best of both. First, contribute to your 401(k) up to the full employer match — that's free money you should never skip. Next, if you qualify, fund a Roth or traditional IRA up to $7,000 in 2025 ($8,000 if 50+), because IRAs usually offer far more investment choices and often lower fees than a 401(k) menu. Then circle back and finish maxing the 401(k) to the $23,500 limit. The exception: if your 401(k) has unusually low-cost funds and you want to simplify, maxing it before the IRA is fine. High earners may be blocked from deducting a traditional IRA or contributing directly to a Roth, which is where the backdoor Roth comes in. Sequence your accounts to grab the match, then the cheapest tax-advantaged space. Map your plan at wealthserene.com/goals/prepare-for-retirement.