Is a 401K a traditional IRA?

If you find yourself asking: “Is a 401K a traditional IRA?” The answer 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.

Can I deduct contributions to a retirement plan or IRA?

Contributions to a Traditional IRA may be deductible if you qualify. Traditional 401(k) contributions are not deductible on your taxes because they are deducted from your paycheck before taxes.  For Traditional IRAs, the deduction may be limited if you or your spouse are covered by an employer plan and your income exceeds certain thresholds. Self-employed taxpayers can also deduct contributions to SEP IRAs and SIMPLE IRAs.

Get help with tax filing

Whether you choose to  or file with , you can rest assured that we’ll get your max refund