Question

Is a 401K the same as a traditional IRA?

Answer

The answer to your question: Is a 401K the same as a traditional IRA is no.

A 401K is a type of employer pension plan. An IRA is an individual retirement account. Both plans provide income in retirement. However, each plan is administered under different rules.

Related Topics

Related Resources

IRS May Start to Tax Your Account in the Caymans

Have you ever thought about investing in a Cayman Islands tax haven? Before opening an account, or making adjustments to an already existing account, review these tax tips.

Social Security Income Tax

Learn more about social security tax and how it affects your income and benefits from the tax experts at H&R Block.

Am I subject to IRA interest tax on the interest my IRA earns, or am I only subject to IRA interest tax if I take an IRA

Learn more about IRA interest tax with help from the tax experts at H&R Block.

I have a question about rolling 401K into IRA and reporting 401K rollover into IRA. If my previous employer made me roll

Learn more about rolling your 401K into an IRA with help from the tax experts at H&R Block.