Investment Account Types: 401k, IRA, and Brokerage Compariso

Compare investment accounts from major brokerages. 401k, IRA, and brokerage account features, limits, and optimization strategies for building wealth.

Understanding different investment account types helps optimize your investment strategy and tax planning. Major brokerages and financial institutions offer various account structures with distinct advantages. ## Employer-Sponsored Retirement Accounts ### 401(k) Plans **Contribution Limits (2024):** - Employee: $23,000 annually - Age 50+ catch-up: Additional $7,500 - Total with employer match: $69,000 **Key Features:** - Pre-tax contributions reduce current taxes - Employer matching (free money if available) - Limited investment options chosen by employer - Required minimum distributions at age 73 **Provider Comparison:** - **Fidelity 401(k):** Low-cost index funds, excellent tools - **Vanguard 401(k):** Rock-bottom fees, quality funds - **Charles Schwab:** Good fund selection, planning tools ### 403(b) and 457 Plans **403(b) for Nonprofit Workers:** - Similar limits to 401(k) - Often higher fees than 401(k) plans - Limited to nonprofit and government employees **457 Plans for Government Workers:** - Same contribution limits - No early withdrawal penalties - Can contribute to both 457 and 401(k) if eligible ## Individual Retirement Accounts ### Traditional IRA **2024 Contribution Limits:** - $7,000 annually ($8,000 if 50+) - Tax-deductible contributions (income limits apply) - Tax-deferred growth - Required distributions starting age 73 **Best Traditional IRA Providers:** - **Vanguard:** Lowest-cost index funds - **Fidelity:** Zero-fee index funds, excellent service - **Charles Schwab:** Quality funds, good customer service - **TD Ameritrade:** Advanced trading tools ### Roth IRA **Income Limits (2024):** - Single: $138,000 - $153,000 phase-out - Married: $218,000 - $228,000 phase-out - Backdoor Roth available for high earners **Advantages:** - Tax-free withdrawals in retirement - No required minimum distributions - Contributions can be withdrawn penalty-free - Estate planning benefits ## Taxable Investment Accounts ### Brokerage Accounts **No Contribut