The biggest difference between a 401(k) and an IRA is the fee structure. The average 401(k) has multiple layers of fees ranging from record-keeping to investment and trustee fees. Finhabits At Work IRAs have a simple fee structure. Our fees are a fraction of the total cost of a 401(k).


Another difference is the contribution limits. That is, during 2016 an employee can contribute up to $18,000 to their 401(k) account (and up to $24,000 if 50 years old or older), and the contribution limit on IRAs is $5,500 (and up to $6,500 if 50 years old or older).

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