How they're similar
Maximum contribution
- The IRS imposes an annual maximum contribution limit
- Individuals age 50 or older can make additional contributions, up to the catch-up limit
Eligibility
- For IRAs, individuals must have earned income; this can come from being paid by someone else or through your own business or farm
- For 401(k), 403(b) and 457(b) plans, individuals must be employed by the plan sponsor or have employment compensation, depending on plan type
Contribution deadline
- For IRAs, by the annual income tax filing deadline
- For 401(k), 403(b) and 457(b) plans, by the end of the day December 31
How they differ
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