IRA vs 401k?
Why not have both? I have been investing in my 401k for about 15 years now, ever since my first Anniversary with my company and I was allowed to contribute money to it. It is currently worth about a quarter of a million dollars. I have only had a Roth IRA for a little over a year.

IRA vs 401k?
If your company does matching for your 401k, then you should put at least that much into your 401k. My company matches half for up to 6%. I started off contributing 8%, later bumping it up to 10%, then 15%, 20%, 25%. I am currently have it at 26%. But if you don’t at least try to get all of the matching money from your company, then you are turning down free money.

IRA vs 401k?
The current 2006 limit for 401k contributions is $15000. The current limit for a Roth IRA is $5000 (not considering catch up stuff). So you can stick more money into a 401k, than a Roth IRA.

IRA vs 401k?
With a Roth IRA, your contributions are after taxes. With a 401k, your contributions are pre-tax. The benefit of pre-tax are that you lower your current taxable income. Your money goes into the account, and the money that would have gone to taxes is earning you dividends. But eventually you will need to pay taxes. You will have to pay taxes on the money as it comes out of your 401k.
With a Roth IRA, you paid the taxes before the money went in. All the money and the dividends earned will be tax-free when you retire. That is a cool idea!

IRA vs 401k?
My personal choice is to max out my 401k first. Then put additional investments into my Roth IRA. After both are maxed out, then I invest in a regular brokerage account. My regular brokerage account isn’t doing anywhere near as well as my Roth IRA or my 401k.