401(k) vs IRA Contribution Strategy Guide for Retirement Planning (2026)
Optimize 401(k) vs IRA contributions: employer match priority, contribution limits, tax treatment, and coordination strategy for maximum retirement savings.
Summary
401(k) and IRA contributions should be coordinated. This guide explains priority order, limits, and tax treatment for maximum retirement savings.
Key Steps
- 1Prioritize employer match: contribute to 401(k) until match captured.
- 2Compare contribution limits: 401(k) $23K, IRA $7,000 (2026).
- 3Evaluate tax treatment: Traditional vs Roth options in both accounts.
- 4Consider income limits: IRA deduction and Roth contribution phase-outs.
- 5Plan contribution order: match first, then IRA, then 401(k) remainder.