The major differences between a 401(k) and a Roth IRA, which are both popular tax-advantaged retirement savings vehicles – are tax treatment, investment ... Since the account is set up and controlled by the account owner, investment choices are not limited to what is made available by a plan provider. read more
Roth IRA. A variation of traditional individual retirement accounts (IRAs), a Roth IRA is set up directly between an individual and an investment firm; the individual's employer is not involved. As there is no employer, there is no opportunity for an employer match with Roth IRAs. read more
A Roth 401(k) and a Roth IRA sound similar — and they are. Contributions are made after taxes, and earnings can be taken out tax-free at age 59 1/2. But the Roth 401(k) has a few key differences from the Roth IRA. read more
A 401(k) Plan can offer loan privileges. An IRA does not have loan privileges. A 401(k) Plan can have an employer match provision. An IRA does not; Contribution amounts are higher for a 401(k) ($18K for 2017). An IRA has a contribution amount of $5,500 (not including catch up) The catch up amount in a 401(k) is $6,000 in 2017. An IRA catch up is $1,000 in 2017. read more