What is a difference between a 401(k) plan and a Roth IRA? a Roth IRA is a retir
ID: 1210983 • Letter: W
Question
What is a difference between a 401(k) plan and a Roth IRA?
a Roth IRA is a retirement account, while a 401(k) is a savings account that people can easily access at any time.
employers tend to match contributions only to a Roth IRA, while contributions to a 401(k) are tax-free when withdrawn after retirement.
employers tend to match contributions to both 401(k) and Roth IRA accounts, but only the 401(k) account is tax-free after retirement.
employers tend to match contributions only to a 401(k), while contributions to a Roth IRA are tax-free when withdrawn after retirement.
Explanation / Answer
Employers tend to match contributions both 401(k) and ROTH IRA accounts, but only the 401(k) account is tax-free after retirement
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