Ask Question
13 February, 00:10

What is one main difference between a 401 (k) and a Roth IRA?

A 401 (k) is something you can sign up for individually; a Roth IRA is something your employer offers.

A 401 (k) does not offer profit sharing options but Roth IRAs do.

You contribute post-tax money to a 401 (k) and pre-tax money to a Roth IRA.

You contribute pre-tax money to a 401 (k) and post-tax money to a Roth IRA.

+5
Answers (2)
  1. 13 February, 00:15
    0
    The correct answer is letter "D": You contribute pre-tax money to a 401 (k) and post-tax money to a Roth IRA.

    Explanation:

    The main difference between a 401 (K) retirement account and a Roth Individual Retirement Account (IRA) relies on how contributions are taxed. While 401 (k) account contributions are pre-taxed, Roth IRA contributions are after-taxed. Besides, 401 (K) accounts are employer-sponsored while Roth IRAs can be opened by individuals.
  2. 13 February, 00:33
    0
    contribution are taxed differently

    Explanation:

    AP3X
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is one main difference between a 401 (k) and a Roth IRA? A 401 (k) is something you can sign up for individually; a Roth IRA is ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers