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IRA vs 401k: Retirement Account Comparison Guide

By Department of Labor EBSA | 7 min read

IRA vs 401k: Retirement Account Comparison Guide

Compare retirement account options with Department of Labor guidance. 401(k) vs IRA contribution limits and benefits.

The Department of Labor explains key differences between retirement accounts. 401(k) plans: Employer-sponsored with possible matching, Higher contribution limits ($23,000 in 2024), Limited investment options. IRAs: Individual accounts with more investment flexibility, Lower contribution limits ($7,000 in 2024), Traditional and Roth options available. Consider contributing to 401(k) up to employer match, then maximizing IRA contributions.\n\n**Related Resources**\n- [Financial Planning Tools](/tools)\n- [Budget Calculator](/budget-planner)\n- [Credit Guide](/category/Debt%20%26%20Credit)\n- [Money Saving Tips](/category/Save%20Money)