Assuming your income is such that you qualify for a Roth IRA and your company makes some kind of matching contribution to a portion of your 401K contributions, the order of contribution should be as follows:

a. Contribute enough to your 401K so you take advantage of the company match – this is found money and should always be taken advantage of.

b. Contribute the maximum amount you can to your Roth IRA.  Different calculations have pretty much shown that if you have a 10-15 year time horizon a Roth is better than contributions to a deferred vehicle like a 401K because you forgo the tax deduction upfront to be able to take all account balances out tax free (if you have held it the longer of five years or when you turn 59 1/2). Since tax rates in the future will only go up, having tax free income is definitely an advantage.

c. If you still want to contribute more to retirement, go ahead and max out your 401K contributions.

This is the best way to maximize what you will receive from your retirement plans.  Call or email if you have questions.