Traditional 401k or Roth

These are retirement plans. You deposit a percentage from your paycheck. Technically you can’t take it out, unless you can justify it’s an emergency, but they will penalize you with a fee. Basically the difference is that traditional you don’t get taxed for the money when you put into your retirement savings, but you will have to pay tax when you take it out. With the roth you pay taxes on the money you put in, however, you won’t pay taxes when you cash out. So it really comes down to when you want to get taxed for it. For both the interest you earn is tax free! You can designate to use both if you want to in most cases.