Is a 401K the same as a traditional IRA?
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
While 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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The minimum income amount depends on your filing status and age. In 2017 for example, the minimum for single filing status if under age 65 is $10,400. If your income is below that threshold, you generally do not need to file a federal tax return. Review our full list for other filing statuses and ages.
Learn more about nontaxable distributions, which should be reported on Form 1099-Div Box 3. H&R Block’s tax pros explain everything you need to know about investment income.
Join H&R Block as we dig into the the mystery of deferred compensation plans for everyday people and the ultra-wealthy.