Question

Is a 401K the same as a traditional IRA?

Answer

The answer to your question: “Is a 401K a traditional IRA?” is no. There is a difference between 401K and traditional IRA accounts.

Traditional IRA vs. 401K

retirement contributionsWhile both plans provide income in retirement, each plan is administered under different rules.

A 401K is a type of employer retirement account.

An IRA is an individual retirement account.

Taxes With 401K or Traditional IRAs

No matter the type of retirement account you choose to open, there will likely be associated tax questions. At H&R Block, we’re here to help. With many ways to file your taxes with H&R Block, you can opt for in-office or virtual tax preparation, keeping all tax laws related to retirement savings accounts in mind, we can make sure you’re producing an accurate tax return that maximizes allowable tax deductions.

Not in need of tax preparation at the moment? Read more about taxes on retirement income, pensions and annuities.

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