IRA vs 401(k) Comparison Guide for Retirement Account Selection (2026)
Compare IRA vs 401(k) retirement accounts: contribution limits, employer match, investment options, and selection criteria for retirement savings.
Summary
IRA and 401(k) have different benefits and limits. This guide compares contributions, match, investment options, and selection criteria.
Key Steps
- 1Compare limits: 401(k) $23K employee, IRA $7,000 annual contribution.
- 2Evaluate employer match: 401(k) match is free money, IRA no match.
- 3Check investment options: IRA broader selection, 401(k) limited menu.
- 4Consider income limits: IRA deduction and Roth contribution phase-outs.
- 5Prioritize order: 401(k) to match limit, then IRA, then 401(k) remainder.