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What are the benefits of a 401(k) versus a IRA?
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The primary benefit of a 401(k) plan over an Individual Retirement Account (IRA) is that 401(k) plans offer employers more control and flexibility when it comes to contributing to employees' retirement savings. With 401(k)s, employers can contribute a certain amount each paycheck or set up automatic contributions, whereas with IRAs, employees must make their own decisions about how much they want to save. Additionally, 401(k)s typically have higher contribution limits than IRAs, allowing you to save more money in your retirement account. Finally, 401(k) plans often come with employer matching contributions, which can significantly increase your retirement savings.