I generally recommend to people they invest for retirement in this order: 1) contribute enough to your 401k to get full company match, 2) Roth / Traditional IRA depending on income, 3) max 401k contribution and 4) after-tax investments. If you don’t have a company match, I would invest first in a Roth/Traditional IRA because they have more investment options and lower fees.
The big difference between the pre-tax 401k and Roth 401k for you today is the tax benefit of the pre-tax contribution. If you contribute 5% of your income, your take home pay will be lower with a Roth 401k. The benefits are you get tax-free growth and tax-free retirement withdrawals. If you live in a no-tax state like FL, TX or WA, I think the Roth is a clear-cut preference. In high tax states, if you’re paying towards the top rate, then I think it makes sense to contribute to both - potentially split your contribution 50/50 between Roth and pre-tax 401k.
Hope this helps and let me know if you have additional questions.
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