I figure its never too early to start saving/planning for retirement (I'm 22). My budget allows for me to divert about 4% of my paycheck (not that much) to my 401k. I have 2% going into a regular 401k and then 2% going into a roth 401k. After 6 months, the company I work for will match my contributions. To be honest, I'm not really sure what the difference between the two is...

My question is, which is the better option to pour money into?

Put it solely in the Roth.

Roth means that the money is taken AFTER you have paid taxes from your paycheck. The money in a Roth account grows tax free, and there is not tax upon withdrawal at retirement.

This. Also, at 22, you're probably not making much money; therefore, you're in a lower tax bracket right now. It's also likely that your income will continue to increase throughout your life, and the taxes you pay in retirement could be higher than your current tax rate. This all means that is' very likely that paying the tax now will be cheaper than paying it in retirement. Plus, all of the coumpound earnings for the next 43+ years will be tax free in retirement. Plus, you can technically put more money away via a Roth because you the contribution limits are the same, but for the same contirbution amount and growth rate, the Roth will be worth more because you don't pay taxes when you withdraw in retirement. However, it is technically easier to put more money into a traditional because you aren't taxed on that money if it comes directly out of your paycheck from your employer (as it would for a 401k).

I would put all of it in a Roth for now.

Exactly what he said, unless your current income is higher than what you anticipate it to be in retirement.  Also, verify with your employer that they match money put into a Roth 401k as some will only match on a traditional 401k.  Whatever you do, make sure you are taking full advantage of the employer match.

Here is a great explanation for you:
https://www.bogleheads.org/wiki/Traditional_versus_Roth

Also remember that with a Roth, there are no required minimum distributions (RMDs). One you turn 70, you HAVE to start withdrawing money at a defined minimum rate from your traditional 401k or IRA and must pay the tax on it. If it's in a Roth, it's already been taxed, the growth on the money is tax free, and you can withdraw whatever amount you want at whatever schedule you choose.

You can also pass on a Roth to your heirs and they don't have to pay taxes on it either.


(Consult with your financial adviser. I'm not one of them)

As others have said, put everything in the roth. You are most likely in a lower income tax bracket, so the taxes paid upfront wont be too substantial, you are young, so the tax free capital gains have many years to grow, you can always withdraw what you put in at any time, no RMDs, and taxes will most likely go up between now and when you retire.