Personal Finance on Yik Yak | Help. My 1st post grad job starts next month and I make 80k/yr. I’m trying to straighten out finances. I have a HYSA and have 9k there. My job has a 403b retirement plan and contributes 5% to it. What is the different b/w that; a Roth IRA and a 401k

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Personal Finance 12w

Help. My 1st post grad job starts next month and I make 80k/yr. I’m trying to straighten out finances. I have a HYSA and have 9k there. My job has a 403b retirement plan and contributes 5% to it. What is the different b/w that; a Roth IRA and a 401k

Anonymous 12w

Roth is money that you invest after taxes and the gains you make from it are not taxed. Max contribution is 7k/year - preferred to max out first 401k/403b is money you divest from your check before its taxed. Taxes are deferred until you start withdrawing the money. Any amount you withdraw will be added to your income for the year and the total amount will be taxed. Max contribution is $23,500/yr HYSA - high yield savings account