401k or IRA? The Ultimate Guide to Choosing the Right Retirement Account in 2025

Article Highlights

• Discover the key differences between 401(k) plans and IRAs to optimize your retirement strategy
• Learn how to maximize employer matching in 401(k) plans while leveraging the investment flexibility of IRAs
• Understand the tax implications of traditional and Roth options in both 401k and IRA comparison scenarios
• Find out which retirement account might be better for your specific financial situation and goals
• Explore advanced strategies to use both account types together for maximum retirement security

Are you trying to figure out which retirement account will serve you best on your journey to financial freedom?

Whether you’re just starting your career or looking to optimize your existing retirement strategy, understanding the differences between 401(k)s and IRAs is critical to making informed decisions about your financial future.

This comprehensive 401k and IRA comparison will help you navigate the complexities of retirement accounts and choose the option that best aligns with your unique circumstances and goals.

Let’s explore the world of retirement accounts and set you on the path to a secure financial future.

Understanding Retirement Accounts: 401k and IRA Basics

Before diving into the detailed comparison, it’s essential to understand what these retirement vehicles are and how they function in your broader financial plan.

What Is a 401(k) Plan? Key Features and Definitions

A 401(k) plan is an employer-sponsored retirement savings account that allows employees to contribute a portion of their wages on a pre-tax basis. Named after the section of the Internal Revenue Code that established it, the 401(k) has become one of the most popular retirement savings vehicles in America.

Key features of a 401(k) plan include:

• Employer sponsorship: These plans are established by employers for their employees’ benefit
• Pre-tax contributions: Contributions reduce your current taxable income
• Tax-deferred growth: Your investments grow without being taxed until withdrawal
• Employer matching: Many employers match a percentage of employee contributions, essentially providing “free money” toward your retirement
• Higher contribution limits: For 2025, you can contribute up to $23,500 to your 401(k), with an additional $7,500 catch-up contribution if you’re 50 or older

401(k) plans typically offer a curated selection of investment options chosen by the plan administrator, which may include mutual funds, target-date funds, and sometimes company stock.

What Is an IRA? Types and Fundamental Characteristics

An Individual Retirement Account (IRA) is a tax-advantaged investment account that individuals can open independently of their employer. There are two main types of IRAs: Traditional and Roth.

Key characteristics of IRAs include:

• Individual ownership: You open and control the account regardless of employment status
• Self-directed investments: IRAs typically offer a broader range of investment options
• Lower contribution limits: For 2025, contribution limits are $7,000 with an additional $1,000 catch-up contribution for those 50 and older
• Flexible tax options: Traditional IRAs offer tax-deductible contributions with tax-deferred growth, while Roth IRAs provide tax-free withdrawals in retirement

Traditional IRAs function similarly to 401(k)s regarding tax treatment—contributions may be tax-deductible, and earnings grow tax-deferred until withdrawal. Roth IRAs, however, are funded with after-tax dollars but allow for tax-free qualified withdrawals in retirement.

The Role of Retirement Accounts in Your Financial Planning

Retirement accounts serve as the cornerstone of your long-term financial security. They offer tax advantages that help your money grow more efficiently while providing structure to your savings strategy.

These accounts play several crucial roles in your overall financial plan:

• Tax optimization: They help minimize your tax burden both now and in retirement
• Wealth building: The combination of regular contributions, tax advantages, and compound growth creates a powerful wealth-building engine
• Retirement income security: They provide a reliable source of income when you’re no longer working
• Long-term investment horizon: Their structure encourages long-term investing, which typically yields better results than short-term approaches

When used strategically, retirement accounts can significantly enhance your financial well-being and provide peace of mind about your future.

401k and IRA Comparison: Key Differences That Matter

Now that we’ve covered the basics, let’s examine the most significant differences between these retirement account options.

Contribution Limits: How Much Can You Invest?

One of the most notable differences in our 401k and IRA comparison is the amount you can contribute annually:

401(k) Contribution Limits (2025):

• $23,500 base contribution limit
• $7,500 additional catch-up contribution for those 50+
• Total potential contribution: $30,500 annually

IRA Contribution Limits (2025):

• $7,000 base contribution limit
• $1,000 additional catch-up contribution for those 50+
• Total potential contribution: $8,000 annually

This substantial difference makes 401(k)s particularly valuable for high-income earners or those looking to accelerate their retirement savings. The higher limits allow you to shelter more income from taxes and build your nest egg faster.

However, it’s worth noting that even with lower contribution limits, IRAs can still play a crucial role in your retirement strategy, especially when used alongside a 401(k).

Employer Involvement: Matching Contributions and Administration

Perhaps the most significant advantage of 401(k) plans is employer matching contributions—something not available with IRAs.

Many employers match employee contributions up to a certain percentage of their salary. Common arrangements include:

• 100% match on the first 3% of salary contributed
• 50% match on the first 6% of salary contributed
• Dollar-for-dollar match up to a specific amount

This employer match represents an immediate return on your investment—often 50% to 100%—before any market growth. That’s why financial advisors typically recommend contributing at least enough to your 401(k) to capture the full employer match before funding other retirement accounts.

Other aspects of employer involvement include:

• Administrative oversight: Employers handle much of the administrative work for 401(k)s
• Automatic enrollment: Many employers automatically enroll eligible employees
• Investment selection: Employers and plan administrators select and monitor the available investment options
• Plan features: Employers determine loan provisions and other plan-specific features

IRAs, by contrast, require more individual initiative—you must open the account yourself, select investments without guidance, and manage contributions without automatic payroll deductions.

Investment Options: Flexibility and Control

While 401(k) plans offer convenience and higher contribution limits, IRAs typically provide greater investment flexibility:

401(k) Investment Options:

• Limited menu of pre-selected mutual funds and target-date funds
• Sometimes includes company stock options
• Usually 10-30 investment choices total
• Higher administrative fees in some cases

IRA Investment Options:

• Access to thousands of stocks, bonds, mutual funds, and ETFs
• Ability to invest in alternative assets in self-directed IRAs (real estate, precious metals)
• Generally lower fees, depending on the provider and investments chosen
• Complete control over investment selection

This investment flexibility makes IRAs particularly attractive to more experienced investors who want greater control over their retirement funds. However, the simplicity of 401(k) investment menus can be beneficial for newer investors who might feel overwhelmed by too many choices.

Tax Benefits: How 401k and IRA Plans Impact Your Tax Situation

Tax treatment is another crucial area where 401(k)s and IRAs have important similarities and differences.

Traditional 401(k) and IRA Tax Advantages

Both traditional 401(k)s and traditional IRAs offer upfront tax benefits:

• Pre-tax contributions: Money goes in before taxes are calculated, reducing your current taxable income
• Tax-deferred growth: Investments grow without being taxed on dividends, interest, or capital gains
• Taxable withdrawals: Withdrawals in retirement are taxed as ordinary income

For example, if you’re in the 24% tax bracket and contribute $10,000 to a traditional 401(k), you could save $2,400 in federal income taxes for that year.

However, traditional IRAs have income limits that may affect deductibility:

• For single filers covered by a workplace retirement plan in 2025, deductibility begins to phase out at incomes above $73,000
• For married couples filing jointly where the contributor is covered by a workplace plan, the phase-out begins at $116,000
• Different limits apply when a spouse is covered by a workplace plan

These income restrictions represent a significant difference in our 401k and IRA comparison, as 401(k) contributions are tax-deductible regardless of income level.

Roth Options: Tax-Free Growth and Withdrawals

Both 401(k)s and IRAs offer Roth options, but with some important differences:

Roth 401(k):

• After-tax contributions
• Tax-free qualified withdrawals in retirement
• No income limits for participation
• Subject to Required Minimum Distributions (RMDs)

Roth IRA:

• After-tax contributions
• Tax-free qualified withdrawals in retirement
• Income limits apply ($138,000 for single filers and $218,000 for married filing jointly in 2024)
• No Required Minimum Distributions during the original owner’s lifetime

The absence of RMDs is a significant advantage for Roth IRAs, making them valuable wealth transfer vehicles. However, the income limits can be a barrier for high earners (though the “Backdoor Roth” strategy offers a potential workaround).

Income Limitations and Deduction Phaseouts

As mentioned above, traditional IRA deductibility and Roth IRA eligibility are both subject to income limitations:

Traditional IRA Deduction Limits (2024):

• Single filers with workplace retirement plans: Full deduction if income is below $73,000, partial deduction up to $83,000
• Married filing jointly with workplace retirement plans: Full deduction if income is below $116,000, partial deduction up to $136,000

Roth IRA Contribution Limits (2024):

• Single filers: Full contribution if income is below $138,000, phased out up to $153,000
• Married filing jointly: Full contribution if income is below $218,000, phased out up to $228,000

These income restrictions make 401(k)s more straightforward for high-income earners, although strategies like the Backdoor Roth IRA (contributing to a traditional IRA and then converting to a Roth) can help circumvent Roth IRA income limits.

Accessibility and Flexibility: When Can You Access Your Money?

Understanding when and how you can access your retirement funds is crucial for proper planning.

Early Withdrawal Rules and Penalties

Both 401(k)s and IRAs generally impose a 10% penalty on withdrawals before age 59½, in addition to any taxes owed. However, there are some exceptions to this rule:

401(k) Early Withdrawal Exceptions:

• Separation from service at age 55 or older
• Qualified domestic relations orders (QDROs)
• Total and permanent disability
• Certain medical expenses exceeding 7.5% of adjusted gross income
• Hardship withdrawals for immediate and heavy financial needs

IRA Early Withdrawal Exceptions:

• First-time home purchase (up to $10,000)
• Qualified higher education expenses
• Health insurance premiums while unemployed
• Birth or adoption expenses (up to $5,000)
• Substantially equal periodic payments (SEPP)

These differences can make IRAs more flexible for specific life events like buying a first home or funding education, while 401(k)s offer more flexibility if you retire or separate from service between ages 55 and 59½.

Loan Options: Borrowing From Your Retirement

One significant advantage of many 401(k) plans is the ability to take loans from your account:

• You can typically borrow up to 50% of your vested balance, with a maximum of $50,000
• Loans must generally be repaid within five years (longer terms may be available for home purchases)
• Interest paid on the loan goes back into your account
• If you leave your job, the loan typically becomes due in full within 60-90 days

IRAs do not offer loan provisions. Any withdrawal is considered a distribution and is subject to taxes and potential penalties unless it qualifies for an exception.

However, IRAs do offer a 60-day rollover rule that functions somewhat like a short-term loan. You can withdraw funds from your IRA and replace them within 60 days without taxes or penalties, but this can only be done once in a 12-month period.

Required Minimum Distributions (RMDs) Explained

Both traditional 401(k)s and traditional IRAs are subject to Required Minimum Distributions:

• RMDs currently begin at age 73 (increasing to age 75 by 2033)
• The amount is calculated based on your account balance and life expectancy
• Failure to take RMDs results in a penalty of 50% of the amount that should have been withdrawn

There are notable differences in how RMDs apply across account types:

• Traditional 401(k)s and IRAs both require RMDs
• Roth 401(k)s require RMDs
• Roth IRAs do NOT require RMDs during the original owner’s lifetime

This RMD exemption makes the Roth IRA particularly valuable for legacy planning and wealth transfer strategies.

Employer 401k vs. Self-Directed IRA: Making the Right Choice

With all these differences in mind, how do you choose which account type is right for you? Let’s explore scenarios where each might be the optimal choice.

When a 401(k) May Be Your Best Option

A 401(k) often makes sense as your primary retirement vehicle in these situations:

• Your employer offers matching contributions: Never leave this “free money” on the table
• You want to maximize tax-advantaged contributions: Higher contribution limits allow you to shelter more income
• You prefer simplicity: Automatic payroll deductions and a curated investment menu simplify the process
• You want stronger creditor protection: 401(k)s generally offer better protection from creditors under federal law (ERISA)
• You might need a loan from your retirement funds: 401(k) loan provisions can provide access to funds in a pinch

For example, if your employer matches 50% of your contributions up to 6% of your salary, that’s essentially an immediate 50% return on your investment—far exceeding typical market returns.

When an IRA Might Be the Better Choice

An IRA might be preferable in these scenarios:

• You’ve left an employer: Rolling over an old 401(k) to an IRA can provide more investment options and potentially lower fees
• You want more investment choices: IRAs offer a much broader range of investment options
• You’re seeking lower fees: Many IRA providers offer low or no-fee accounts with access to low-cost index funds
• You’re self-employed or have no employer plan: An IRA provides tax-advantaged retirement savings without an employer
• You want to avoid RMDs: Roth IRAs don’t require minimum distributions, making them excellent wealth transfer vehicles

The investment flexibility of IRAs can be particularly valuable for investors who want to pursue specific strategies not available in most 401(k) plans, such as individual stock selection or alternative investments.

The Optimal Strategy: Using Both Account Types

For many people, the ideal approach combines both account types in a strategic manner:

1. First, contribute enough to your 401(k) to get the full employer match
2. Then, fund an IRA (traditional or Roth, depending on your tax situation) up to the annual limit
3. Finally, return to your 401(k) and contribute additional amounts up to the annual limit

This strategy maximizes employer matching while also taking advantage of the investment flexibility and potential tax benefits of an IRA.

For a married couple, this approach could allow for up to $77,000 in tax-advantaged retirement contributions annually ($23,500 × 2 in 401(k)s plus $7,000 × 2 in IRAs, plus catch-up contributions if eligible).

Special Situations: 401k and IRA Options for Unique Circumstances

Certain life situations may call for specialized retirement account strategies.

Self-Employed Retirement Options: Solo 401(k) vs. SEP IRA

Self-employed individuals have access to enhanced versions of standard retirement accounts:

Solo 401(k):

• Available to business owners with no full-time employees (besides a spouse)
• Allows contributions as both employer and employee
• 2025 limits: $23,500 as employee plus up to 25% of compensation as employer, to a combined maximum of $69,000 (plus catch-up contributions)
• Offers Roth option for employee contributions
• More administrative requirements than a SEP IRA

SEP IRA (Simplified Employee Pension):

• Easier to set up and maintain than a Solo 401(k)
• Allows employer contributions only, up to 25% of compensation
• Maximum contribution of $69,000 for 2025
• No catch-up contributions
• No Roth option

The Solo 401(k) typically allows for higher total contributions at lower income levels due to the dual contribution structure, while the SEP IRA offers simplicity and ease of administration.

Job Transitions: What to Do With Your 401(k)

When leaving a job, you have several options for your 401(k):

1. Leave it with your former employer: If the plan has good investment options and low fees, this can be a simple solution
2. Roll it over to your new employer’s plan: This consolidates your retirement savings but limits you to the new plan’s investment options
3. Roll it over to an IRA: This typically offers the most investment flexibility and control
4. Cash it out: This is generally the least advisable option due to taxes, penalties, and the loss of tax-advantaged growth

The optimal choice depends on factors like investment options, fees, loan provisions, and your personal preferences regarding account consolidation and management.

For example, if your old 401(k) has access to institutional share classes with extremely low expense ratios, it might make sense to leave it in place. Conversely, if you want more control over your investments, rolling it to an IRA might be preferable.

Spousal IRAs and Family Considerations

Retirement planning often extends beyond individual considerations to include family dynamics:

• Spousal IRAs: Allow non-working spouses to contribute to an IRA based on the working spouse’s income
• Inherited IRAs and 401(k)s: Have different distribution rules depending on the beneficiary’s relationship to the original account holder
• Beneficiary designations: Critical for ensuring retirement assets pass according to your wishes

The SECURE Act of 2019 significantly changed the rules for inherited retirement accounts, generally requiring non-spouse beneficiaries to withdraw all funds within 10 years instead of stretching distributions over their lifetime.

Setting Up and Managing Your Retirement Accounts

Proper setup and ongoing management are essential for retirement account success.

How to Open and Fund an IRA

Opening an IRA is a straightforward process:

1. Choose a provider: Consider brokerages (Fidelity, Vanguard, Charles Schwab), robo-advisors (Betterment, Wealthfront), or banks
2. Complete an application: Provide personal information and beneficiary designations
3. Fund the account: Via bank transfer, check, or rollover from another retirement account
4. Select investments: Choose from options like index funds, ETFs, mutual funds, or individual securities

When selecting a provider, consider factors like:

• Available investment options
• Account fees and expense ratios
• Customer service quality
• Educational resources and tools
• Ease of use for online and mobile platforms

For most investors, low-cost index funds or ETFs that track broad market indices provide a simple, effective investment strategy.

Enrolling and Maximizing Your 401(k)

Making the most of your employer’s 401(k) involves several key steps:

1. Complete enrollment: Either through automatic enrollment or by proactively signing up
2. Set contribution percentage: Aim for at least enough to get the full employer match
3. Select investments: Typically from a menu of mutual funds and target-date options
4. Review and adjust: Periodically review your contribution rate and investment allocations

Consider these strategies to maximize your 401(k):

• Gradually increase your contribution percentage, especially with salary raises
• Take advantage of auto-escalation features if available
• Review fees and expense ratios when selecting investments
• Consider whether traditional or Roth contributions (if available) are more advantageous

Monitoring and Rebalancing Your Retirement Portfolio

Ongoing management keeps your retirement plan on track:

• Regular reviews: Check your accounts at least annually
• Asset allocation: Ensure your investment mix aligns with your time horizon and risk tolerance
• Rebalancing: Periodically reset your portfolio to maintain your target allocation
• Adjustment with age: Gradually shift to more conservative allocations as you approach retirement

Regular monitoring doesn’t mean frequent trading—in fact, constantly tinkering with investments often leads to poorer performance. Instead, establish a systematic review process that helps you stay disciplined with your long-term strategy.

Common Mistakes to Avoid with 401k and IRA Investments

Even with the best intentions, investors often make costly mistakes with their retirement accounts.

Missing Out on Employer Matching Contributions

Not contributing enough to get your full employer match is like declining a portion of your compensation.

• For example, if your employer matches 50% of contributions up to 6% of your salary, and you earn $75,000 annually, contributing less than $4,500 (6%) means missing out on up to $2,250 in matching funds each year.

If you can’t afford to contribute the full amount needed for the match, try to:

• Start with what you can afford
• Increase your contribution percentage with each raise
• Consider reducing other expenses to prioritize retirement savings

Ignoring Fees and Expenses

Fees may seem small but can significantly impact your retirement savings over time:

• A difference of just 0.5% in annual fees can reduce your final balance by tens of thousands of dollars over a 30-year period
• 401(k) plans often have administrative fees separate from the expense ratios of the funds themselves
• IRA providers may charge maintenance fees, trading commissions, or account fees

When evaluating investments, look at both expense ratios and any additional fees. In 401(k) plans, check if your plan offers institutional or R6 share classes, which typically have lower expense ratios than retail funds.

Poor Asset Allocation and Diversification

Improper investment allocation can expose you to unnecessary risk or insufficient growth:

• Too conservative when young: Missing growth opportunities during your highest earning years
• Too aggressive near retirement: Risking significant losses without enough time to recover
• Overconcentration in single stocks: Particularly company stock in 401(k) plans
• Inadequate diversification: Failing to spread investments across different asset classes

A well-diversified portfolio typically includes a mix of stocks (domestic and international) and bonds, with the specific allocation depending on your time horizon and risk tolerance.

Target-date funds can provide built-in diversification and automatic rebalancing for investors who prefer a hands-off approach, though they may have higher fees than building your own portfolio of index funds.

Frequently Asked Questions About 401k and IRA Comparison

Can I Contribute to Both a 401(k) and an IRA?

Yes, you can contribute to both a 401(k) and an IRA in the same year. However, there are some considerations:

• Your ability to deduct traditional IRA contributions may be limited if you also have a workplace retirement plan, depending on your income
• Roth IRA contributions may be limited or phased out based on income levels
• The contribution limits for each account type apply separately ($23,500 for 401(k) and $7,000 for IRA in 2025, plus catch-up contributions)

For high-income earners, a Backdoor Roth IRA strategy may provide a workaround to Roth IRA income limitations.

How Do I Roll Over a 401(k) to an IRA?

There are two methods for rolling over a 401(k) to an IRA:

Direct Rollover (recommended):

• Funds transfer directly from your 401(k) provider to your IRA provider
• No taxes are withheld
• No risk of penalties or taxes if done properly

Indirect Rollover:

• You receive a check for the distribution
• 20% is typically withheld for taxes
• You must deposit the full amount (including the withheld portion) into an IRA within 60 days
• Failure to complete the rollover within 60 days results in taxes and potential penalties

To initiate a rollover:

1. Open an IRA account with your chosen provider
2. Contact your 401(k) administrator and complete their rollover forms
3. Specify that you want a direct rollover to avoid withholding
4. Choose investments once the funds arrive in your IRA

What Happens to My 401(k) or IRA When I Retire?

When you retire, you have several options for your retirement accounts:

• Keep them as is: Continue to benefit from tax-advantaged growth until RMDs begin
• Begin systematic withdrawals: Set up regular distributions to replace employment income
• Convert traditional accounts to Roth: Pay taxes now for tax-free growth and withdrawals later
• Roll over 401(k)s to IRAs: For more investment flexibility and potentially lower fees

Strategic withdrawal planning becomes crucial in retirement to:

• Minimize taxes
• Ensure sustainable income throughout retirement
• Optimize Social Security benefits
• Plan for healthcare costs
• Leave a legacy for heirs if desired

How Does a Roth 401(k) Compare to a Roth IRA?

While both Roth 401(k)s and Roth IRAs offer tax-free qualified withdrawals, they have several key differences:

• Contribution limits: $23,500 for Roth 401(k) vs. $7,000 for Roth IRA (2025)
• Income eligibility: No income limits for Roth 401(k)s; Roth IRAs have income phaseouts
• RMDs: Required for Roth 401(k)s; not required for Roth IRAs
• Investment options: Limited menu for Roth 401(k)s; wide selection for Roth IRAs
• Early access: More restrictive for Roth 401(k)s than for Roth IRAs

For many high-income earners, the Roth 401(k) is the only direct way to make Roth contributions without using the Backdoor Roth strategy.

Advanced Strategies: Optimizing Your 401k and IRA for Maximum Growth

Beyond the basics, several advanced strategies can enhance the effectiveness of your retirement accounts.

Tax-Efficient Asset Location Strategy

Strategic placement of investments across your retirement and taxable accounts can optimize after-tax returns:

• Tax-inefficient investments (those generating ordinary income or short-term gains) are best held in tax-advantaged accounts
  • Examples: REITs, high-yield bonds, actively managed funds with high turnover
• Tax-efficient investments (those generating qualified dividends or long-term capital gains) can be held in taxable accounts
  • Examples: Index funds, municipal bonds, individual stocks held long-term

For instance, a total bond market index fund might be best placed in a traditional IRA or 401(k), while a tax-efficient stock index fund might work well in a taxable account.

This strategy works like the familiar saying: “Don’t put the cart before the horse.” In investment terms, don’t put tax-inefficient investments in accounts where they’ll create unnecessary tax drag.

Backdoor and Mega Backdoor Roth Strategies

High-income earners have access to specialized strategies to maximize Roth contributions:

Backdoor Roth IRA:

1. Contribute to a non-deductible traditional IRA
2. Convert the traditional IRA to a Roth IRA
3. Pay taxes on any earnings (minimal if conversion happens quickly)

Mega Backdoor Roth (for 401(k) plans that allow after-tax contributions and in-plan Roth conversions):

1. Make after-tax contributions to your 401(k) beyond the standard limits
2. Convert these after-tax contributions to a Roth 401(k) or roll them into a Roth IRA
3. Potentially contribute up to an additional $46,000 to Roth accounts (the difference between the employee contribution limit and the total plan limit)

These strategies require careful execution and consideration of the pro-rata rule, which can impact tax treatment for those with existing pre-tax IRA balances.

Retirement Account Laddering for Tax Efficiency

Creating tax diversity across account types gives you more flexibility in retirement:

• Having multiple account types (traditional, Roth, and taxable) allows you to strategically withdraw from different sources based on your tax situation each year
• Roth conversion ladders involve converting portions of traditional accounts to Roth accounts over several years to spread out the tax impact
• Strategic RMD planning helps minimize the tax impact of required withdrawals

This approach allows you to potentially:

• Stay in lower tax brackets during retirement
• Minimize Medicare premium surcharges
• Reduce taxation of Social Security benefits
• Create flexibility for heirs and legacy planning

Conclusion: Creating Your Personalized Retirement Strategy

As we’ve seen throughout this 401k and IRA comparison, both account types offer valuable benefits for retirement savers. The optimal approach often involves using both strategically, based on your unique financial situation.

When developing your retirement strategy, consider:

• Taking full advantage of employer matching in your 401(k)
• Utilizing IRA flexibility for broader investment options
• Creating tax diversity with both traditional and Roth accounts
• Regularly reviewing and adjusting your plan as your situation evolves

Remember that retirement planning is not a one-time decision but an ongoing process. As tax laws change, as your income evolves, and as you move through different life stages, your optimal strategy may shift.

The most important step is to start saving and investing for retirement as early as possible. The power of compound growth means that even small contributions can grow significantly over decades.

Take action today: increase your 401(k) contribution, open an IRA, or simply review your current retirement strategy to ensure it aligns with your long-term goals.

Your future self will thank you for the thoughtful planning you do today.