What is the basic difference between an IRA and a 401K?

What is the basic difference between an IRA and a 401K?
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Answer :

When deciding were to invest your retirement money you have many options, two of those are an IRA and a 401K. A 401K is set up by the employer, where as an IRA is set up on personal preferences.
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Related questions

What is the difference between a 401k plan and an IRA?

Description : What is the difference between a 401k plan and an IRA?

Last Answer : They are basically the same thing but have different names. The only other difference is will be the deductibility of the 401K compared to the IRA.

What's the difference between a 401k vs. IRA rollover?

Description : What's the difference between a 401k vs. IRA rollover?

Last Answer : A 401k is a retirement savings plan that is offered by most major corporations and employers. An IRA is an Individual Retirement Account that can be opened by individuals independent of their employer based retirement plans.

Can you recommend some things I should think about and/or investment opportunities I should consider (e.g. 401k, Roth IRA, etc) and how to decide where to start?

Description : Can you recommend some things I should think about and/or investment opportunities I should consider (e.g. 401k, Roth IRA, etc) and how to decide where to start?

Last Answer : The most important thing is just to start!

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Description : 401k ira?

Last Answer : One of the most important aspects of having good financialresponsibility is properly preparing for retirement. To prepare forretirement you will need to set up long term investment goals,maintain your investments ... the other hand, an IRA is madewith post tax contributions. While this may sound

Is there any penalty with a 401K rollover to IRA?

Description : Is there any penalty with a 401K rollover to IRA?

Last Answer : You can avoid penalties doing a rollover, but you have to follow directions completely. There are deadlines that have to be met when requesting the procedure.

Is a 401K the same as an IRA?

Description : Is a 401K the same as an IRA?

Last Answer : A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not.

Does a 401K or Roth IRA provide greater tax efficiency?

Description : Does a 401K or Roth IRA provide greater tax efficiency?

Last Answer : A 401k and a IRA are different. A 401k is a employer sponsored plan while a IRA is not. A Roth grows tax free, while a 401k is taxed when you withdrawl the funds.

What are the implications of cashing out my 401k vs. doing an IRA rollover?

Description : What are the implications of cashing out my 401k vs. doing an IRA rollover?

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Can you rollover an old 401k into an IRA account?

Description : Can you rollover an old 401k into an IRA account?

Last Answer : You can roll over a 401k account into your IRA account. This is cost effective and relatively easy.

How do I do an IRA to 401k rollover?

Description : How do I do an IRA to 401k rollover?

Last Answer : This is not something you should do by yourself if you do not have much experience as this can cause you money. You can go to bankrate.com for some great ideas and suggestions on who can help you.

Is it a good idea to rollover from a 401k to an IRA?

Description : Is it a good idea to rollover from a 401k to an IRA?

Last Answer : Both 401k and Individual Retirement Accounts (IRAs) are retirement savings accounts. You may ask your old employer to do a direct rollover of your 401k plan to your IRA account with no loss of money.

Can I roll over my 401k plan from my last employer to my IRA account?

Description : Can I roll over my 401k plan from my last employer to my IRA account?

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What are best IRA companies for 401k rollover?

Description : What are best IRA companies for 401k rollover?

Last Answer : TD Ameritrade and Fidelity are two well-known and respected companies that offer incentives for 401k rollover. Vanguard is another great company to do business with.

What way can you transfer assets from 401k to Roth Ira?

Description : What way can you transfer assets from 401k to Roth Ira?

Last Answer : You can have the money automatically transferred from your checking or savings accounts right into your 401K to your Roth ira. Go to irs.gov for more information.

Is there an easy way to switch from 401k rollover to Roth ira?

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Last Answer : You need to get a form from your former employer. Secondly, open a roth IRA account with a bank. Complete the rollover form and your employer will transfer the funds to your roth IRA.

What is a cheap way to transfer my 401k to Roth ira?

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Last Answer : First you need to do a 401k rollover to Roth account. You will need to open a Roth IRA account. Do a 401k rollover to a Roth IRA online with any brokerage firm online. If you do find ... get more assistance or help with more information by visiting http://hubpages.com/hub/401k-rollover-to-roth-ira

Will my 401K automatically roll over to Roth IRA?

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Last Answer : One needs to roll their 401k to an IRA. One needs to physically authorize the removal of the 401K funds to the new location. If the IRA is at the same institution as the 401k, less paper work may be involved.

How is the 401k different from the Roth ira?

Description : How is the 401k different from the Roth ira?

Last Answer : There is one main difference between a 401k and a Roth IRA. The maximum contribution limit for a 401k is about three times that of an IRA.

When saving for retirement, what is better, a 401k or a ROTH ira?

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Last Answer : It is better to do a 401K if your company will match any money that you put in. Put in only what they will match and put the rest in a Roth ira for the best outcome.

Basic Information About 401k Loans?

Description : Basic Information About 401k Loans?

Last Answer : Do you need a business loan or personal loan for advancing your business and personal needs? Quality Finance Limited provides businesses and individuals around the globe financial solutions and loans, ... support that you would be needing in your entire process of business growth to development

What's the difference between a Roth IRA and a Self-directed IRA?

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What's the difference between a tradition IRA and a Roth IRA?

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What is the difference between a Roth Ira and just an IRA?

Description : What is the difference between a Roth Ira and just an IRA?

Last Answer : Roth IRAs are similar to regular IRAs except for the fact that they allow you to forgoe a tax deduction. In order to qualify for a Roth IRA you must have documented form of compensation.

What's the difference between a 401k and a Roth 401k?

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What's the difference between Roth and a 401K?

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Will you educate me on IRA and CDs and stuff?

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Accountants and small business owners can you give me some info on a SEP IRA?

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Can anyone suggest a socially responsible Roth IRA?

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Any advice on setting up your first IRA account?

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How could I find the best Roth IRA rates?

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Why did so many Americans, openly financially support the IRA, when they are now so against other forms of TERRORISM.

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Can I rollover a Keogh to an IRA?

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Last Answer : Wow! I thought this question was something else entirely…...guess it’s not an Irish question!

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