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<\/a>Many of my estate planning and elder law clients have questions revolving around their retirement accounts. \u00a0Sometimes it’s helpful to start at the basic level. \u00a0“What is the difference between an IRA and a 401k?”<\/p>\nThe term 401k and individual retirement account (IRA) are thrown around quite a bit when discussing retirement planning and estate planning, but there are some large differences between the two accounts.<\/p>\n
IRA vs. 401k<\/h2>\n
For starters, where there names. \u00a0A 401k is named as such due to the tax code that discusses it, while an IRA is an individual retirement plan.<\/p>\n
Both IRAs and 401k’s allow you to put assets into an account to save for retirement. \u00a0Both allow you to begin taking distributions from these plans at age 59 1\/2.<\/p>\n
IRAs are further distinguished from 401k’s because there are two main types of IRAs. \u00a0There are Roth IRAs and traditional IRAs. \u00a0Roth IRAs allow you to pay the taxes up (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Many of my estate planning and elder law clients have questions revolving around their retirement accounts. \u00a0Sometimes it’s helpful to start at the basic level. \u00a0“What is the difference between an IRA and a 401k?” The term 401k and individual…<\/span><\/p>\n