Will Saving in an IRA Alone Shortchange You in Retirement?

While many Americans have access to 401(k) plans through their employers, not every company offers one. The good news is that if you don't have a 401(k) available for retirement savings purposes, you can always put your money into an IRA instead.

IRAs offer a number of benefits. For one thing, they allow you to invest your retirement savings in individual stocks, whereas with a 401(k), you can generally only buy funds. Many IRAs also come with lower fees than 401(k)s.

But if there's one downside to being limited to an IRA, it's not getting to set aside as much money each year for retirement as a 401(k) would allow for. Currently, IRAs max out at $6,000 a year for savers under 50, and $7,000 a year for those 50 and over.

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Source Fool.com