1st: get your match. 2nd: Roth IRA. 3rd: Max employer-sponsored accts.
There isn’t a global suggestion for which is better. But there is an order of precedence for what types of accounts to fund in what order.
- Get any available employer match. Free money is good.
- Max out Roth IRAs. ← offers the most flexibility along the way.
- Max out employer-sponsored plan.
Note: HSAs and 529 Accounts factor in here, too. Those ends complicate the means you’ll take to save money.
Answering the original question:
If you expect to take in more money each month in your retirement distributions than you’re making now, you should pay taxes now.
If you’re making a boatload now and expect to make less when you retire (say, you expect to own your house and won’t need that income), then you’re better NOT paying taxes now, and instead paying them later.
Source
- Ultimate List of Tax Advantaged Accounts
- /r/personalfinance