Roth IRA vs Traditional IRA: What’s the Difference?
IRA stands for Individual Retirement Arrangement, commonly called an Individual Retirement Account. It is a retirement account that individuals can open separately from an employer-sponsored retirement plan such as a 401(k).
401(k) vs IRA: Which Retirement Account Is Better?
A 401(k) is an employer-sponsored retirement savings plan. If your company offers one, you can generally contribute money from your paycheck into the account and invest those contributions. Many employers also offer a company match. For example, an employer may match a percentage of what you contribute, subject to the plan's rules and limits.