This 401(k) Trend Is Increasing -- and It's Not a Good One
There are a number of ways that 401(k) plans differ from IRAs. With a 401(k), your retirement plan is funded through payroll contributions. And you may be eligible for some type of employer match.
IRAs, on the other hand, are self-funded, and so there are no matching incentives involved. IRAs also come with much lower contribution limits than 401(k) plans. However, on the plus side, IRAs allow savers to invest their money in individual stocks, whereas 401(k) plans generally limit savers to a bunch of different funds.
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Source Fool.com
