401k vs. Roth IRA

I am commonly asked which is better. Both have great tax exemptions/deferments. Both also have max contributions. My simple answer is this. If your company does a 401(k) price match, exhaust that first. This is free money. Example: If your company will match 6% of your contribution, then contribute at least the 6%. You are getting 12% for contributing 6%. I would then contribute to the Roth IRA. The max contribution on a Roth IRA right now is 5k per year. This is a phenomenal investment vehicle as the any interest accrued is tax free, less early withdrawal. Also, you can withdraw any amount up to the principle invested without tax penalties as you have already paid tax on this money(Roth IRA's are post tax contributions). If there is any room to invest more, max out your 401(k). Be advised, there is a $15,500 max contribution on this vehicle as well.