IRAs vs. 401(k)s: Which Retirement Plan Is Right for You?
Saving for retirement is one of the most important financial steps you can take, and IRAs and 401(k)s are two of the most popular retirement savings accounts. Each offers tax advantages, but they work differently depending on your financial situation.
A 401(k) is an employer-sponsored plan that allows you to contribute pre-tax dollars, often with company matching contributions, making it a great way to boost your savings. On the other hand, an IRA (Individual Retirement Account) is available to anyone and offers more investment flexibility. Choosing between the two depends on your income, employer benefits, and financial goals. Ideally, contributing to both accounts can maximize your retirement savings and help you enjoy financial freedom in your golden years.