Roth IRA vs Brokerage
Roth IRA vs Taxable Brokerage — Where to Save After 401(k)?
After capturing the 401(k) match, your next $7K should almost always go to a Roth IRA — tax-free growth and tax-free withdrawals beat a 15% LTCG hit every time.
Verdict
Always max the Roth IRA first ($7K in 2026). Move to taxable brokerage only after Roth, HSA, and 401(k) are maxed. Backdoor Roth if your income is above the cap.
Side-by-side comparison
Who should pick Roth IRA
Anyone under the income cap. Younger workers. Anyone targeting tax-free retirement income.
Who should pick Taxable Brokerage
Above-cap earners after exhausting Backdoor Roth. Mid-term savers (5-15 years). Anyone needing flexibility before 59½.
Related tools
Backdoor Roth on $250KFor above-cap earners.401(k) vs Roth IRASequence decision.Capital Gains Tax CalculatorQuantify the tax drag.
Disclaimer. Comparison numbers depend on your tax bracket, state, and time horizon. Educational only — not personalized financial advice. See our Financial Disclaimer.
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