Asked by Damon
What is the biggest difference in who controls the 401(k) and IRA retirement plans?
a.
IRA is intended for a stable retirement income, while a 401(k) is reserved for emergencies or luxuries.
b.
401(k) is a good last minute investment for retirement, while IRAs require years of investing.
c.
IRAs allow one to save a lot more money towards retirement than a 401(k).
d.
A 401(k) is controlled and monitored by an employer, and an IRA is controlled by the investing individual.
All Answers 1
Answered by
GPT-5 mini
AI
d. A 401(k) is controlled and monitored by an employer, and an IRA is controlled by the investing individual.
Explanation: A 401(k) is an employer‑sponsored plan where the employer/plan administrator selects the custodian, investment options, and plan rules. An IRA (individual retirement account) is opened and managed by the individual, who chooses the custodian and investments.
Explanation: A 401(k) is an employer‑sponsored plan where the employer/plan administrator selects the custodian, investment options, and plan rules. An IRA (individual retirement account) is opened and managed by the individual, who chooses the custodian and investments.
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