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What are the benefits of a 401(k) versus an IRA?
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The primary benefit of a 401(k) is that it offers tax-deferred growth. This means your contributions to the account are not taxed until you withdraw them in retirement, which can provide significant savings over time. In addition, 401(k)s often have higher contribution limits than IRAs, so they can be more beneficial for those who need to save more. Finally, 401(k)s typically offer employer matching contributions, meaning you may receive additional money from your employer if you contribute enough.