Roth IRA vs. 401k
I'd like to know what the difference is between IRAs and a 401k. With the traditional IRA and 401k you pay proior to putting money in correct? However a 401k allows an employer to match funds?
So a Roth IRA allows you to pay tax on the money going in but not on the money coming out while a 401k doesn't correct?
Also lets say you do regular IRA vs Roth IRA. Can anyone tell me the percentage you'd have to make going in that would offset the interest you'd pay at the end? I was reading where if you put in 2% of a check and made a high percentage and took someone else who put in 5% making medium percentage. THe person who put in 5% would come out way ahead. So could doing a regular IRA be better since you can put more in. By putting more in I'm stating you have $3k total to put in and have to pick one. The regular IRA would allow you to put in $3k while you'd be taxed on the $3k in the Roth. Would the additional money put in the regular be worth more than the taxes paid at the end?