There are several major differences between 401(k)s and IRAs. Some of them are rather well-known.

One major difference is investment flexibility. With an employer’s 401(k), you're generally limited to a small "menu" of investment funds. This can be fine if you want to keep your retirement investing on autopilot, but an IRA lets you invest in virtually any stocks, bonds, mutual funds, or exchange-traded funds you want. If you want some of your retirement savings in Nvidia (NASDAQ: NVDA) stock, for example, an IRA can let you do it.

Some differences between 401(k)s and IRAs aren’t quite as well-known but can be very important to understand. One of the biggest differences is how you can use these accounts early.

Continue reading

Source Fool.com