Typical American workers will have multiple retirement accounts by the end of their careers, and these can be 401(k)s or IRAs. While a 401(k) is an employer-sponsored plan, an IRA is set up by the individual. The biggest difference between the two is contribution limits. In 2019, employees who participate in a 401(k) will be able to save $19,000 per year in 2019, up from $18,500 in 2018. Annual contributions for people aged 50 an over are higher.

 

On average, though, employees have an annual contribution of $3,300 (as stated by the U.S. Department of Labor), which means IRAs are a great option for many Americans.

Was this answer useful?

YES
NO

Ready to invest?

Get started

Or call us at 1-800-492-1175 to speak to a team member.