By saying "IRA vs 401k" I think you're misspeaking. There's a Roth IRA, and a traditional IRA. There's a Roth 401k and a traditional 401k. I think you're trying

By saying "IRA vs 401k" I think you're misspeaking. There's a Roth IRA, and a traditional IRA. There's a Roth 401k and a traditional 401k. I think you're trying to make a Roth vs traditional distinction, not an IRA vs 401k distinction. You're right that the article confuses various things. But you're wrong in your analysis. Capital gains rate has nothing to do with this. Whether it's Roth or traditional, and whether it's 401k or IRA, you never pay capital gains rate, you always pay income tax rate. You're also wrong in saying paying up front is better in terms of tax rate. In terms of tax rates, Roth vs traditional both have the same rate (assuming you have the same tax rate now as in retirement) (and IRA vs 401k also both have the same rate, regardless of tax rates now vs retirement). Roth does have several advantages though. It has a higher effective legal contribution limit. It also allows a higher density of value per dollar, which is useful in a fund like the Medallion fund that is limited to $10B.