Are You Making the Most of Your 401(k)?
Not everyone is fortunate enough to have access to a 401(k) plan. Unless you're self-employed, you'll need your company to offer one of these savings plans to have the option to contribute. Otherwise, you'll be limited to an IRA.
Now, IRAs aren't bad at all. In fact, they offer a world of benefits. But one drawback to being limited to an IRA is that these plans come with much lower annual contribution rates than 401(k)s do.
Currently, 401(k) plans max out at $19,500 for workers under 50 and $26,000 for those 50 and over. IRAs, on the other hand, max out at $6,000 for workers younger than 50 and $7,000 for the 50-and-over set.
Source Fool.com
