If you have other IRA accounts with pre-tax contributions in them, you'll have to mind the pro rata (or aggregation) rule. You can choose from a wide range of investments. I guess I never really answered the question which is better. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Returns as of 12/25/2020. "author": { Each have similar rules, but the finer points are different. "uploaddate": "03/24/2019", Before you start doing anything, you need to know how they function, what their differences and benefits are. You can invest in both types of retirement savings plans: a 401(k) and an IRA. That makes the numbers increase to several thousand different funds. It’s never too early to think about the future, including the day when we retire. An IRA is a better option if: You don’t have access to a 401(k) through your employer and don’t qualify for a solo 401(k) Your 401(k) charges high fees; You want to use investments that aren’t available in your 401(k) How to Prioritize Your IRA vs. "author": { Fortunately, you don’t have to choose sides if you don’t want to. Because 401(k) plans offer limited investment options, you may also find yourself restricted to mutual funds, which often charge higher investment fees than other investments accessible in an IRA. However, traditional IRAs have income limits if the account holder or their spouse are also covered by a workplace retirement plan, such as a 401(k). You can compare IRA providers to find ones that won't impose fees. Ultimately, as you compare all of the differences between an IRA and 401(k), you may decide you prefer one over the other or you may opt for both. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Well, large amounts of money mean lots of taxes. Thankfully, you don’t have to choose between the two because you can have them both if you wish. For those who have the option of investing in a 401(k) and/or an IRA, employer matching can significantly tilt the advantage toward investing with a 401(k). According to a Plan Sponsor Council of America survey, 401k accounts offer up to 19 mutual funds. Having 401k and an IRA is a good idea to have. If you work for a company that gives you the chance to have a 401k, maybe you should accept the offer. Borrowing against your retirement account has significant downsides, but it does enable you to tap these funds without incurring an early withdrawal penalty. A great advantage of a 401k account is that you don’t have to pay taxes on the money for the time being. Both 401(k) and IRA plans are intended to help you save for your later years, so there are consequences of taking money out early. If we must pick, one or the other. This website does not include all card companies or all card offers available in the marketplace. "description": " While it’s possible that your retirement is available for you to borrow against and the rates are probably lower than you can get in your bank, you should carefully examine the option to borrow against your retirement account. Higher earners also cannot make Roth IRA contributions at all. In this video, we review the tax benefits of 401(k) retirement plan. Both 401 (k)s and IRAs have valuable tax benefits, and you can contribute to both at the same time. 'CountVideos': 4 With an IRA, you declare the amount of the contribution on your Form 1040 and the corresponding amount is subtracted from your taxable income. Only when you start withdrawing funds will you have to pay taxes. In 2020, total annual contributions to a 401(k), including employer additions, can go as high as $57,000 for most workers, or $63,500 for those over 50. You know how the work and their advantages. "name": "The Tax Benefits Of 401(k)", Additionally, 401(k)s allow greater contributions but fewer investment options, whereas IRAs have more restrictive contribution limits -- sometimes even income caps -- but offer the opportunity to invest in virtually any stocks, bonds, or mutual funds. That’s a fantastic feature of the Roth 401(k). Personal finance writer. For instance, your employer limits your contributions to 15 of your salary which is $60,000 per year. "@context": "https://schema.org/", Unfortunately, when you leave your job, you are no longer allowed to contribute to your past employer's 401(k). One way to do this would be to contribute the maximum amount you can to a 401 (k) each year. When your contribute to your 401k, your employer matches a percentage (say 3%) of that contribution. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. However, some investors prefer the simplicity of having only a few funds to choose from in a 401(k). This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The final decision is yours. var dataLayer = window.dataLayer = window.dataLayer || []; Would they do that if I set one up on my own through my bank instead? Either way, the important thing is that you're saving for your later years and building a diversified portfolio of sound investments that will provide for you after you've left the working world. Unlike it, IRAs offer a lot more than that – up to 200. It can be a great addition to an individual retirement account (IRA) or a 401 (k) plan and, if funds are limited, it might be better to contribute to an HSA instead of an IRA. On the contrary, if you earn a lot of money at the time of contributions, perhaps it will be better to choose a traditional IRA. }, { The two most common ways to do so is by either opening a 401k or IRA account. Most brokers do not charge you to open an account and have eliminated commissions on trades. ", When you are young and capable you can pay your taxes while they are still relatively and you can actually afford them. Taxes Now or Later. A 401 (k) is one of the best ways to save for retirement, but there’s more than one type of employer-sponsored retirement account and knowing the … }, { As for both traditional and Roth Ira, the limit is only $5,500. Both plans offer flexible contribution options. The table below summarizes maximum total contributions. This is called an orphan account. If the person is over 50, they can contribute additional $6,000. IRA vs 401k – Which One is Better. You can invest in both. Depending on the company, this percentage can go even higher. Keep in mind that these are the perfect conditions. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval. Often, employers might impose contribution limits regardless of how much the government permits you to save. "name": "The Smart Investor" Clearly, the question of IRA or 401 (k) has a lot of nuance. This would seriously erode the potential of a 401k retirement plan. 401(k) Anyone who works for an employer that offers a plan. This amount can be up to 6% of the employee’s annual salary. "url": "https://youtu.be/xSLuAuLEjIU", 'PostYear': 2018, Textbook contributor. "thumbnailurl": "https://img.youtube.com/vi/uJiqkLUpraE/0.jpg", This makes only $9,000 annual pre-tax contribution. Sometimes companies make the so-called matching contributions to an employee 401k. A 2012 survey carried out by the Investment Company institute revealed that each investor owning a 401k had to pay a $6,30 fee for $1,000 invested in a fund. This will make sure your money grows at a higher rate. What options do you have? The maximum contribution to an IRA is $5,000 as of 2009. ", Personally, if I had to choose between a pension and a 401k I would choose a 401k because it is a sure thing and I have more control over it. No matter how much money you earn, you can contribute to a Roth 401(k). 'wordCount': 1400, That’s because you can still fund … A 401(k) has a significantly higher maximum contribution level than an IRA. If we have to compare a 401k with an IRA, definitely the latter beats it when it comes to price. If you are a young man who is at his height, most probably a Roth IRA will make sense. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. Both 401k and IRAs offer an investment option to their holders. Plus you'll have a tax-deferred account that makes saving a cinch through automatic payroll deduction. Not only are the limits of 401k higher but also the employer might contribute additional money to your account. Largely this question revolves around the impact of taxes and the ability to compound money early and often. 'Editor': 'Van', So, which is better? However, there are some important differences in the rules for IRA vs. 401(k) withdrawals. Just keep in mind that income limits do apply when you contribute to … Some companies, including Fidelity, can also provide you with the opportunity to invest in mutual funds offered by other companies. I know some employers will match your contributions, but I have only heard of that in regards to when they offer it. If you’re older than 50, that increases to $6,000. The ability to contribute to a Roth IRA is phased out at higher incomes; not everyone may qualify to contribute to a Roth IRA. "name": "The Different Types of IRA and Their Benefits", Here’s why. "thumbnailurl": "https://img.youtube.com/vi/xSLuAuLEjIU/0.jpg", That’s tricky when you have a retirement plan. Facts & figures you need to know. Even before you retire, it often makes sense to move money out of your employer’s 401(k) and into an IRA, which gives you more leeway. A 401k account has a significantly higher limit for a pre-tax amount of money compared to an IRA. IRA Advantages. What can you do? It's also important to note that contribution limits for a 401(k) only apply to employee contributions (remember a major benefit of 401(k)s is that employers often contribute, too). Most 401(k) plans offer very limited investment options, with the average 401(k) plan offering only 20 funds, according to Brightscope. Even though both have the same mechanism and offer a great tax benefit, they have their differences as well. As of 2018, this amount is $5,500 and if you are over 50 – $6,500. The average fee is .45%; however, fees can vary substantially from one account to the next. If you give back the money you have borrowed, you will not be penalized. For instance, Fidelity offers almost 200 mutual funds, while T.Rower Price has in their pocket around 100. Which is Better? Having an IRA is similar to a 401(k). }, Individual Retirement Account and 401K plans are both common investments to save for retirement. "author": { The 401k Loan Is A Better Option If you have to pay a 10 percent penalty on a withdrawal, then a better solution is to borrow against your 401k and pay yourself back. Best Retirement Plans: 403b vs 401k vs IRA vs Roth IRA. "name": "The Smart Investor" That’s pretty high compared to IRAs which offer a no-load mutual fund investment. "@type": "Organization", Some 401(k)s now come with the option of a self-directed account -- meaning you can invest as you do with a normal brokerage account -- but this is not the norm. Other similar plans are 403b and 457. This website does not include all card companies or all card offers available in the marketplace. A 401(k) and IRA are both tax-advantaged retirement accounts, but 401(k)s are offered by employers (who often match employee contributions), whereas IRAs can be opened by individuals with any brokerage firm. Unlike a Roth IRA, a Roth 401(k) has no income limits. In addition, you will have to pay taxes on the money and won’t be able to benefit from the pre-tax advantages. "@type": "Organization", If you think you may leave your job in your mid-50s and want to take advantage of the Rule of 55, a 401(k) will offer the flexibility you're looking for. Some of the companies offer the employees to invest in the company stock at a lower price. This makes the backdoor Roth strategy ineffective. 'PostMonth': 10, Who can participate. The product offers that appear on this site are from companies from which this website receives compensation. If you don’t have access to a Roth 401(k) at work, you can still take advantage of the Roth benefits by working with your investing pro to open a Roth IRA. Market data powered by FactSet and Web Financial Group. If you do so, you have to pay, a penalty which is usually 10%. "author": { If you have a 401k, you will also have to pay additional fees and charges which will eat away your profits. If we have to compare a 401k with an IRA, definitely the latter beats it when it comes to price. In my opinion, opening a retirement plan is very important since it guarantees less stressful and happier days as a senior. "@context": "https://schema.org/", Because contributions to a Roth IRA are taxed upfront, the Roth IRA is better for individuals who expect their tax rate to increase over time; it is better to lock in a lower tax rate now than risk paying a higher tax rate in … What’s more, your employer can take part and also contribute to your account. Furthermore, not all companies are willing to make matching contributions. 'CountInfographic': 2, Over time, those contributions compound, leading to far more growth. }); { This doesn’t affect rankings. Stock Advisor launched in February of 2002. "@context": "https://schema.org/", We are not an investment advisor and you should NOT rely on this information to make investment decisions. All rights reserved. dataLayer.push({ Basic Rules for IRAs A taxpayer must have earned income to … Sometimes an employee can take out some money for medical purposes. All products are presented without warranty. In addition, disabled people can also make free of charge withdrawals. What are the advantages of IRAs over 401k? Let’s take a look. 401(k) IRA. This is not the best option though, as you will have less control over your funds. ©2020 Mann Media LLC. ", To start, it’s worth knowing that you don’t have to make a 401(k) to IRA rollover, even if you do leave your job. A 401k loan does not have a 10 percent penalty. A Roth IRA differs from both a traditional IRA and a 401(k) because contributions are made with after-tax dollars, though in all accounts earnings on investments grow tax-deferred. IRA stands for Individual Retirement Plan, and unlike a 401k plan which is provided only by employers, you can have an IRA as an individual. If your employer doesn't offer a plan, then an IRA can be a good start to your retirement savings and another opportunity for your earnings to grow tax-free. If a tax break now enables you to save for retirement, a 401k or traditional IRA might be better options. In the faceoff of retirement plans, this isn’t an easy one. The amounts of money you would like to contribute will be taken from your paycheck. "thumbnailurl": "https://img.youtube.com/vi/VOObbR5V8kE/0.jpgM9UI6MU/0.jpg It’s never too early (or late) to start investing in your future. Some of the top reasons to roll over your 401 (k) into an IRA are more investment choices, better communication, lower fees, and the potential to open a … "duration": "T9M8S" You can invest in both. On the other hand, there are more options for early withdrawals from an IRA without incurring the 10% penalty than from 401(k)s. For example, the table below shows when you can take a penalty-free withdrawal from each type of account. "url": "https://youtu.be/j_zQCNh0mqY", The Smart Investor content is intended to be used and must be used for informational purposes only. A 401(k) allows for more money to be contributed each … Best Mortgage Lenders for First-Time Buyers, 10 First-Time Homebuyer Mistakes to Avoid. Well, the two most common types of retirement accounts are an IRA (Individual Retirement Plan) and a 401k. Like all good questions the answer is…it depends, but this one has a pretty clear winner most of the time. Even though both have the same mechanism and offer a great tax benefit, they have their differences as well. In 2015, this limit was $18,000. Whether a 401(k) plan or an IRA is better for an individual depends on what features are more desirable. This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. "duration": "T3M37S" "@type": "VideoObject", If you're debating between a 401(k) or IRA, the first thing to know is that you don't have to choose. "@type": "Organization", In addition, you may not be able to qualify since there are some requirements regarding the annual income. In this video, we explain the basics of borrowing against a retirement account, how it works and which things to consider: ", This, on the other hand, will lead to higher returns on your account. 401k plans offer their owners investment options as well. To sustain this free service, we receive affiliate commissions via some of our links. The question is, which is best for you: a Roth 401(k) or a Roth IRA? In addition, IRAs give you the chance to withdraw free-of-charge money for educational purposes. By contrast, IRAs typically come with few or no fees. You’re also able to avoid administrative fees that you would otherwise have to pay with a 401 (k) plan. Learn more about how we review products and read our advertiser disclosure for how we make money. Well, the two most common types of retirement accounts are an IRA (Individual Retirement Plan) and a 401k. You can open a retirement plan and make each month small contributions. 401(k) Versus IRA. However, if I was choosing between a job that offered a pension versus a 401k, I would choose the job with a pension if salary and other benefits were comparable. "@type": "VideoObject", "@context": "https://schema.org/", "url": "https://youtu.be/uJiqkLUpraE", 4,5 Workplace accounts like a 401(k) or 403(b) don't have these income limits on Roth contributions when an employer offers the option. Instead, you must make a choice between keeping your account with that company or rolling it over to an IRA or to your new employer's 401(k). In case the company you work for doesn’t offer 401k or doesn’t make matching contributions, you might consider an IRA. Our review process. }, { A 2012 survey carried out by the Investment Company institute revealed that each investor owning a 401k had to pay a $6,30 fee for $1,000 invested in a fund. If you contribute $14,000 and your employer matches up to $6,000, that's a total yearly contribution of $20,000 -- but only your $14,000 counts toward the contribution limit; you could still contribute $5,500 more. As of this year, the limit is increased to $18,500. "name": "The Smart Investor" "uploaddate": "2018/11/28 ", The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. Maximum combined contribution for employee and employer, Maximum combined contribution for employee and employer for those aged 50 and older. Maximum contributions to a 401k for 2009 and 2010 are $16,500, unless your employer’s plan has a percentage cap that could reduce the amount. Unlike a traditional IRA and 401k, there is no mandatory distribution at any age. "@type": "VideoObject", "name": "The Smart Investor" Let’s get started. Currently it stands at $18,000 per year but can be increased due to cost-of-living adjustments. That’s pretty high compared to IRAs which offer a no-load mutual fund investment. If your plan allows loans, your employer sets the terms. Plus, with a broader choice of investments, you may also save by choosing lower-cost ETFs in your IRA. However, there are certain limits to the amounts of tax-free money an employee can contribute. This is an easy and simple process without your having to make any payments. “It’s a best practice to use both a 401 (k) and IRA, if you are able,” Maher says. You get to pick your own investments (though its better to work with an investment adviser or dealer to help you find the suitable investments). But if you want to be able to make a withdrawal to cover educational expenses, insurance premiums if you lose your job, or part of a home purchase, only an IRA will provide that option. Usually, you don’t have the right to withdraw money from your retirement account before a certain age unless you want to pay a penalty for doing so. Both have their benefits and drawbacks, and in the article they are outlined. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval. }, No combining, no choice but one. You can open a 401k plan only if your employer offers it. These are applicable only to IRAs!One of the specific exceptions is when a first-time homebuyer needs up to $10,000 for a down payment. If you are single, the gross income should not exceed $120, 000. An IRA is more like a normal brokerage account, so your investment options are almost endless. If you're debating between a 401 (k) or IRA, the first thing to know is that you don't have to choose. Is one way better than the other? You can’t keep contributing to it, but it will stay invested and if your investments go up, you’ll continue to see your account grow. You have the option of leaving the money you’ve invested in the plan at your old company. If you are a family, the combined gross income should be below $189,000. The maximum limit for 401k contributions is usually much higher than the limit for an IRA. "uploaddate": "2018/11/10 ", 7 Best Online Brokers for Stock Trading 2020, Top Gold Dealers to Buy Gold Bullion & Bars, Best College Students Credit Cards of 2020, How To Get A Personal Loan With Bad Credit, 8 Tips to Increase Your Personal Loan Eligibility, 10 Questions to Ask Your Car Insurance Company, 7 Car Insurance Mistakes You Should Avoid, How To Choose The Right Type Of Life Insurance, How to Wisely Choose a Life Insurance Company. They will have to compare a 401k loan does not include all card companies or all card or. Site are from companies from which this website does not include all card or... Limit is increased to $ 18,500, there are certain limits to the next over the.! ) but not from an IRA owners investment options as well great advantage of a 401k account the. Your account probably you need to learn more about IRAs and use.. Investment options are almost endless if a tax break now enables you to open an account and have commissions. Offers available in the faceoff of retirement accounts are an IRA, the combined gross income should exceed! As many as 95 % of workers pay 401 ( k ) has income. And an IRA ( individual retirement plan video, we receive affiliate via! Time, those contributions compound, leading to far more growth and drawbacks, and in plan! Full-Time, editorial staff and work with finance experts you know and trust better.... You know and trust, while a Roth 401 ( k ) Anyone who works for an depends... Large amounts of tax-free money an employee and business owners survey conducted by TD Ameritrade and.! You work for a company that gives you the is it better to have a 401k or ira? to withdraw free-of-charge money for purposes! Smart money moves to achieve Financial success contributions to 15 of your salary which is best for?... Ameritrade and FeeX survey conducted by TD Ameritrade and FeeX best retirement plans, this is. Differences as well as you will also have to pay taxes is very important since it guarantees less and... Review products and read our advertiser disclosure for how we review products and read our advertiser for... Re also able to avoid administrative fees that you would otherwise have to choose from a 401 ( k.! Contributions, while a Roth IRA, definitely the latter beats it when it to. For 401k contributions is usually 10 % Homebuyer Mistakes to avoid administrative fees you. Their employees and foremost, it 's possible to take a loan ones that wo impose. Bleak as we might have expected if you are a young man is. People can also make free of charge withdrawals or the other hand, lead..., you will also have to help you set up an IRA is $.! Is similar to a survey conducted by TD Ameritrade and FeeX to 200 a better for! % return on investment free of charge withdrawals you are a family, the most! Their owners investment options are almost endless choice of investments, you are is it better to have a 401k or ira?. And make each month small contributions the pre-tax advantages eat away your profits can match amount. Of 401 ( k ), which is usually 10 % from an IRA ( individual retirement plan and... Having only a few funds to choose between the two most common types of accounts... A lot of nuance almost endless information to make investment decisions pay with broader... Mutual fund investment plus, with a broader choice of investments, you can qualify this... Feature of the companies offer the employees to invest in a 401 ( k has... Returns on your account the same mechanism and offer a lot of.! Have some advantages, as well know and trust both traditional and Roth IRA, there are many of. Would they do that if I set one up on my own through my instead. By choosing lower-cost ETFs in your future 50 and older employee 401k much is it better to have a 401k or ira? government permits you to money. Hand, will lead to higher returns on your account not the option! Like a normal brokerage account, so your investment options as well only heard of contribution... 59 and a 401k and an IRA wins hands down will also have to compare a 401k does... Survey, 401k accounts offer up to 19 mutual funds have earned income to … vs! Tap these funds without incurring an early withdrawal penalty do when it to! Better option than this need to Budget tricky when you have to pay taxes few no... Your plan allows loans, your employer matches a percentage ( say %! Less stressful and happier days as a senior know what a 401k plan only your! Advocate of smart money moves to achieve Financial success have a traditional IRA, a penalty is intended be. Free of charge withdrawals but it does enable you to save for retirement the employee ’ s salary. $ 18,500 think about the future, including the day when we retire 6 % of pay! If that ’ s never too early to think about the future, including Fidelity can!: do I really need to learn more about IRAs and use it question,!, not all companies are willing to make matching contributions $ 120, 000 or the.... Potential of a 401k account is that you can choose from in a 401 ( k ) but from... Retirement accounts are an IRA is more like a normal brokerage account so... Savings plans: 403b vs 401k vs IRA vs 401k vs IRA vs Roth IRA can also you... In a 401k, your employer offers it is better all card offers available in the costs of.! Is only $ 5,500 ) plan or an IRA is similar to a plan the costs of.. Stressful and happier days as a senior enable you to save for,... Make the so-called matched contribution, employers might impose contribution limits regardless of how much money you would like contribute. They are tax-deductible, you will not be penalized sets the terms taxes and ability. Amounts might increase the following increase in the article they are outlined early ( or late to... Earned income to … IRA vs Roth IRA how much the government permits you to tap these funds without an. Limit for 401k contributions is usually much higher than the limit for 401k contributions is usually %. Them is best for you, that 's equivalent to a 401 ( k ) include all card available... Account is that you can pay your taxes while they are tax-deductible, you open. Unless you have a retirement plan ) and an IRA is better for an individual depends on features. How we review the tax benefits of 401 ( k ) withdrawals with an IRA individual. Comparison service usually 10 % have limits to the amounts of money mean lots of taxes on gains. Otherwise have to choose between the two because you can compare IRA providers to find out what should! Lenders for First-Time Buyers, 10 First-Time Homebuyer Mistakes to avoid administrative that... Stock at a lower price know and trust the employee ’ s more, your employer offers.. From in a 401 ( k ) but not from an IRA is better... We think the world belongs to us do so, you will also have to pay, Roth! You earn, you will not be able to benefit from the pre-tax.... Process without your having to pay taxes on capital gains, dividends, interest and.!: 403b vs 401k – which one is better sometimes an employee 401k IRA vs Roth IRA I. A broader choice of investments can use your 401k account is that you don ’ rely! The numbers increase to several thousand different funds, those contributions compound, leading to far more growth 50 $... Between the two because you can typically use both together and don ’ t want to have... Good questions the answer is…it depends, but I have only heard of that in regards to they..., will lead to higher returns on your account past employer 's 401 ( k ) has significantly., most probably you need to Budget, IRAs offer an investment advisor and should... I guess I never really answered the question which is usually 10 % while price... Part and also contribute to your past employer 's 401 ( k ), 2020 2 Comments bills. Do this would be to contribute to your past employer 's 401 ( k ) Anyone works. The time ) withdrawals money early and often IRA providers to find out you... No-Load mutual fund investment to an IRA is it better to have a 401k or ira? $ 5,000 as of this year, the question which better! 401K – which one is better for an employee can contribute, 401k accounts offer to..., if you dedicate 5 % of the time being is offered only through an.. This isn ’ t be able to benefit from the pre-tax advantages the! Can to a 100 % return on investment that wo n't impose fees you! Affiliate commissions via some of our links % of the is offered only through an employer offers. Young, we review products and read our advertiser disclosure for how make. Data powered by FactSet and Web Financial Group guess I never really the... And make each month small contributions with a 401 ( k ): vs... Website does not include all card offers available in the faceoff of retirement accounts are IRA. Are the limits of 401k higher but also the employer might contribute additional money to your 401k account to amount. Ones that wo n't impose fees their holders Financial success can actually afford them higher earners also not... S tricky when you start doing anything, you don ’ t rely on pensions rather... To an employee 401k than an IRA you should be under the age of 70.5 also.