When should I contribute to my IRA over my 401(k)?

Question

I know there are a few different factors to this, such as if you've reached the contribution limit for the year on your 401(k). With a 401(k) you can get employer contribution matching and a higher contribution limit.

So other than reaching the contribution limit on your 401(k), when would you want to contribute to an IRA over a 401(k)? Does traditional versus Roth accounts make a difference?

JTP - Apologise to Monica · Accepted Answer

you have already deposited up to the employer match on the 401(k) and the IRA is more attractive. (Features listed in other bullet points)
the 401(k) does not offer the Roth version, and you prefer that as an option so you use Roth IRA
you already have $100K+ in the 401(k), so the loan option is already optimized (i.e. the $50K limit is available)
you like the strategy of converting to Roth over time.
The 401(k) fees are high. After the match, it's just extra cost
The 401(k) investing options are not varied enough or to your liking. IRA has far more flexibility
(more to come)

When should I contribute to my IRA over my 401(k)?

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