The reach to the bars should be comfortable. If it's too short you will be cramped on the bike. Too long and you will roll your shoulders forward to reach the bars, which will make them hurt after a while. Or you will ride with your elbows locked, which makes you unstable because you are twitching the bars every time you hit a bump.
Whatever you do, do not move the saddle forward (or back) to adjust the reach to the bars. That's the wrong way to go about it. If you move the seat forward then you'll be putting more weight on your hands, and you won't be able to pedal as efficiently. You set the seat position relative to the cranks, then adjust the handlebar height and reach.