Required Minimum Distributions: How Do They Differ Between IRAs and 401(k) Plans?

Required Minimum Distributions: How Do They Differ Between IRAs and 401(k) Plans?

Both types of accounts are qualified. That means you don’t pay taxes on growth as long as the funds stay inside the account. Both also offer tax-favored contributions. Your 401(k) contributions are deducted from your paycheck pre-tax, effectively reducing your taxable income.