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What is the difference between 401(k) and IRA?

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What is the difference between 401(k) and IRA?

Both are retirement savings plans. The 401k plan is an employer based plan whereas the IRA is an individual plan. The employee contribution limit in IRAs is 3 times less than the 401k.

Sub: #1 posted on Wed, 07/24/2019 - 02:16

Nick Jonas Nick Jonas

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These are retirement plans. 401 (K) is employer sponsored plan. Ans IRA is an individual retirement plan.

Sub: #2 posted on Fri, 07/26/2019 - 06:55

Sanders Patricia Sanders Patricia

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As of 2019, the annual limit for 401(k) contributions is $19,000 for under the age of 50. People older than 50 can contribute $6,000 extra per year to catch-up contributions.
The Roth IRA accounts have smaller contribution limits. In 2019, the maximum annual contribution for people under 50 is $6,000. In 2008 the figure was $5,500.

Sub: #3 posted on Thu, 08/01/2019 - 03:01

Barbara Delinsky Barbara Delinsky

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