The Advantages of a 401k Over an IRA
December 24th, 2011
There are advantages to either account, and what is really important is that you are saving at all, but there are some particular advantages to the account you get through your employer when you’re trying to decide between a 401k or IRA. The biggest thing to consider here is the 401k match. This is a contribution match that your employer offers. It is usually up to a certain percentage of your income, so, for example, they’ll match your contribution to your account up to three percent of your income. Even if you decide to open up an independent retirement account, it’s smart to still open a 401k as well to at least take advantage of that match, whatever the percentage is. It’s money you’re entitled to that you won’t be seeing any other way.
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