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June 3, 2019
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Employer 401k vs ira

  • June 3, 2019
  • 1 reply
  • 25 views
is my elective deferrals into a 401k the same as an ira contribution?
Best answer by

No, they are not the same.  Elective referrals to a qualified retirement plan are made with pre-tax dollars.  IRA contributions are made with after-tax dollars, which is why many taxpayers receive a tax deduction for their contribution.

1 reply

Answer
June 3, 2019

No, they are not the same.  Elective referrals to a qualified retirement plan are made with pre-tax dollars.  IRA contributions are made with after-tax dollars, which is why many taxpayers receive a tax deduction for their contribution.