401k or Roth?

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23 years old and have my first job that offers 401k or Roth and they match your contribution. What should I go with and why? Thanks

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I'd take the company 401k and setup your own Roth and try to max (both) out as quickly as you possibly can.

I'm 32 and started doing that when I was 28, should have started earlier.

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23 years old and have my first job that offers 401k or Roth and they match your contribution. What should I go with and why? Thanks

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Always go with Roth over traditional. Roth is pre taxed so the number at the end of the road is the number you get. But I would max out with their match.

Why? Is it because Roth’s taxes are taken out in the beginning? I’m new to all of this. How much should I put in it?

Roth is after tax dollars. So its dollars from your paycheck that have already been taxed. You can withdraw them without a tax penalty after 5 years.

401k is going to be pre tax, so eventually, when you retire, you will pay income tax on that money. Or if you withdraw early, you pay an additional penalty.

If they're willing to match both, I'd max out the Roth if you don't have enough to do both but when you make enough money, take advantage of both setups.

401k max is like 20k/year right now, Roth is going to be 6k.

Are you asking about Roth option in your 401k or a separate Roth IRA? If so, if you are in a lower tax bracket now do the Roth 401k option. If you anticipate being in a lower bracket when you retire take the traditional 491k option and reduce your taxable income now.

Fund 401k up to full match (Roth or traditional) then set up Roth IRA and fund that up to max $6k then go back and attempt to fund 401k up to employee contribution limit ($19500)

Roth IRA has more/better investment options and you can access contributions anytime penalty free if needed (but dont!). You cant just access Roth 401k penalty free unless you roll over into a Roth IRA.

I am assuming you asking whether to utilize the regular 401K or Roth 401k option within your company's plan. You can likely use both as long as the combined total contribution does not exceed $19,500 in 2021. The company match component will always be applied to the regular pre-tax 401k. At 23, even if you are making $100k+/year, the Roth 401k option is going to be the best. At $100k and single, your fed tax rate would be about 20%. If you did the full contribution of $19,500, you would save about $4,000 in taxes with the regular 401k and have to pay standard tax rates upon withdrawal at 59 1/2. If you eat the tax burden now and go with the Roth IRA for the full $19,500, you can withdraw that money tax free at 59 1/2. At a conservative 8% earnings rate for 36 years, the $19,500 would compound to $344,000. Paying $4000 in tax now is much better than paying taxes on $344,000 later. You also are not required to make withdrawals starting at 70 with a Roth 401k like you are with a regular 401k. About the only time the formula works to chose a regular 401k over a Roth 401k is if you are getting started after 50 and fall in 35% tax bracket.