I cringed when I read that the Cares Act designed to help Americans adversely affected by the pandemic would allow people to withdraw up to $100,000 from their retirement accounts without penalty. Having worked with participants of retirement plans for nearly 30 years, I knew this would possibly open up another excuse to steal from their future.
IRA or 401(k)? Know the key differences between these two popular retirement plans to ensure you are saving in the right account.
Individual retirement accounts (IRAs) and 401(k) s share a lot of similarities. They are both retirement plans. They both can help you lower your tax bill today, provide tax-deferred growth, and help provide an income source in retirement.