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IRAs vs. 401Ks

IRA vs. 401(k)

How much should I save for retirement?

Answer: As much as you can!

IRA & 401K 2 of the best ways to save for retirement

What are they?

  • Accounts that help you save money for retirement
  • Defer your tax payments and build your wealth

What’s the difference?

An IRA is set up by the individual and funded with their own money.

A 401(k) is set up by an employer includes contributions made by the employer.


Individual Retirement Account

Who sets it up?

It is an investment account set up by an individuals.

Who can contribute?

All you need to open an IRA is taxable, earned income.


  • Contributions are tax deductible
  • Contributions can grow tax deferred
  • Everyone is eligible to enroll
  • Funds are protected from creditors in bankruptcy
  • Can pass along to heirs


Retirement savings plan sponsored by an employer, it lets employees save and invest a portion of their paycheck before taxes are taken out.

What the “name” means?

Refers to the section of the U.S. tax code that allows for this tax-deferred retirement planning.

Who sets it up?

Provided by your employer


  • You do not have to pay taxes on the money you have put into your 401(k) account until you retire
  • The IRS taxes all withdrawals at your ordinary income tax rate

Good Luck!

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