How to Choose Between a 401(k) and IRA
With the demise of traditional pension plans and the projected future of Social Security in doubt there has never been a more important time for individuals to seize the initiative of saving for their retirement. But with many different options to choose from, it is imperative that retirement money be invested wisely and with as many tax advantages as possible. Both 401(k) accounts and Individual Retirement Accounts (IRA) are important vehicle s to save for retirement, but which to choose from ? Here are some of the attributes of both 401(k) accounts and IRA's and how each can help you meet your retirement savings goals. Funding your 401(k) account through your employer is the perhaps the most important investment step that you can make. Not only do many companies offer to match your contributions to these accounts, but 401(k) accounts have the important characteristic of being tax deferred, meaning that all interest and growth of principal is not taxed until the mon