IRA vs. 401(k): Which is better?

Workers can save for retirement by using a 401(k) and an individual retirement account. If you want to set aside funds for the future but aren’t sure which option to choose, know what each involves.

As you compare retirement accounts, consider:

— Key differences between a 401(k) and an IRA

— What is a 401(k)?

— 401(k) pros and cons

— What is an IRA?

— IRA pros and cons

— Should you have a 401(k), an IRA or both?

Key Differences Between a 401(k) and an IRA

While there are similarities between 401(k)s and IRAs, each has unique features. The major differences between 401(k)s and IRAs include:

— Anyone with eligible earned income can open an IRA, but a 401(k) is only available through an employer.

— A 401(k) has a higher contribution limit than an IRA.

— A 401(k) may provide an emp