You didn't mention if you get matching from your company. If you do, max that out first as that is free money you are throwing away if not used.

Then, most likely you will be better off with the Roth IRA, but it is dependant upon certain factors as Kuan mentions. Most likely getting your money in the market now (in the next few years) either way will be great if you don't want it for another 40 years.

For me, the plan is max company matching into 401k (403b for me) first. Then max the Roth IRA, then back to the 401k (403b). I'm not maxing anything right now, just my plan when I (hopefully) get there.

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2009 ML320 Bluetec
1985 300CD
1981 300TD

Past Mercedes
1979 300TD
1982 300TD
2000 E320 4Matic Wagon
1998 E430
1984 300SD
1980 300SD