401(K) vs Roth IRA: Which is better for Finacial Freedom

Invest in a 401(K) or Roth IRA? They are extremely similar to one another. Yet the differences between them can be the difference between thousands or even millions of dollars waiting for you in the future.

Outline:
Intro: 0:00
What is a 401(k)?: 0:42
What are the benefits of a 401(k)? 1:09
What are the downsides of a 401(k)?: 2:03
What is a Roth IRA?: 3:03
What are the benefits of a Roth IRA? 3:44
What are the downsides of a Roth IRA?: 4:48
Comparison of 401(K) and Roth IRA: 5:37
Is a 401(K) or Roth IRA best?: 7:23

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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

[Blestmama]

Please on Back door IRA! Best and simplest video on this amazing topic…thanks so much

[LYFEAccounting]

Watch This Next: HSA Accounts Explained

[dbest]

What's BACKDOOR ROTH IRA ? How 2 increase contributions limits for ROTH IRA ?

[richardatkins]

Great explanation. It was also very helpful to see the two contrasted with summaries and graphs. Much obliged.

[rachelthomas]

This is the best thing on the internet. Im sharing with absolutely everyone l can. Very grateful for you POURING out your knowledge while making it plain. Continued success to you!! Thank you very much!

[iseekbutthetruth]

Hello Keran, I'd to hear about the "Backdoor Roth IRA" too please.

[carolynboone]

Your content is awesome very informative. Tu

[Robert-ywip]

Your videos are the BEST! If I took a year off and had no income, could I do a 401k to Roth IRA conversion to trigger earned income, allowing me to contribute the $6k yearly maximum to my Roth IRA? I'm not sure if the IRS considers the conversion amount as earned income, even though it is taxed. :/

[r.e.]

Great day, LYFE Accounting family. Thank you once again for such valuable content as always.👍

[Hi-jxoe]

Is a Roth a form of assest protection from creditors and IRS?

[ramzee]

Excellent video as always, thanks for the info. I’m a bit puzzled:
I quit my job last year and started my own business, so this tax year my income won’t be as high as it was with my previous job. I have $20k on 401k. Do you think I should roll to a Roth ira or just leave my 401k as is for a couple yrs and then rollover. This yr I just want to contribute $6k…
Thanks!!

[rlegard]

How can I contribute to a backdoor Roth IRA?