Is ira and 401k the same thing??

posted

No, they are not the same type of retirement plan.

IRA: Individual Retirement Plan, is one that you setup on your own, outside of your employer. Open an account with banks, mutual funds or brokerages. Contributions can be deductible on your tax return.

401k: These are employer-sponsored plans. Contributions are made pre-tax via payroll deductions. Contributions are reflected on your W-2.

Distributions from both plans would be reported on a 1099-R and entered into your tax return.

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I'm the plan administrator for a self directed 401K. My financial institution does not issue a 1099R for this account. How do I report my RMD? do I just create, in TT, a 1099R as if it came from my financial institution ? TY

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Is ira and 401k the same thing??