What is the difference between a Roth IRA and 401k?

Asked 4 years ago

Are there any particular differences between the two? Is one better than the other in any way?

Retirement saving 401(k)Retirement account

Osasere Okunloye

Monday, June 28, 2021

No, none is better than the other. It depends on some factors like your financial profile, age etc. Roth 401k is best suited for higher-income earners because it has a high-income limit. Roth IRA is for those that one to grow their investments longer. It offers more investments options and easy withdrawals.