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What are the benefits of a 401(k) versus a IRA?
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The primary difference between a 401(k) and an IRA is the amount of control you have over your investments. With a 401(k), you have more flexibility in terms of what types of investments you can make, whereas with an IRA, you’re limited to investing in stocks, bonds, mutual funds, and other securities. A 401(k) also typically offers higher contribution limits than an IRA, as well as additional tax advantages. Additionally, 401(k) plans may offer employer contributions, which can further increase your savings potential.