IRA Vs. 401(k): These 4 Questions Will Help You Choose

Saving for retirement is important, no matter what type of plan you opt to house your money in. But IRAs and 401(k)s differ in many ways, and choosing the right account could be instrumental in growing wealth for your senior years.

If you're not sure which retirement plan is right for you, here are four questions that will help you arrive at that decision.

Employer-sponsored 401(k)s come with much higher contribution limits than IRAs. In both 2020 and 2021, 401(k)s max out at $19,500 for workers under 50 and $26,000 for those 50 and older. IRAs, on the other hand, max out at $6,000 for savers under 50 and $7,000 for the 50-and-over set.

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Source Fool.com