People always seem t be confused about whether they should invest in 401(k) or an IRA. Both of them have tax benefits. While you are confused between 401(k) vs IRA, you should not focus on only 1 of them, instead, they accomplish each other to max out your 401(k) and retirement savings.

The major difference between 401(k)s and IRAs is that your employers will offer 401(k)s to you and there is a very dew investment option in there, but IRAs are opened by individuals (using brokers or banks) and have a variety of investment options. The 401(k)s can accumulate higher annual contributions compared to IRA.

Check out the article by Dayana Yochim and Andrea Coombes on Nerdwallet to know more differences between 401(k) and IRA.