Understanding IRAs

Elliot Pepper explains the difference between a 401k and an IRA. An IRA is like a 401k but is not employer-sponsored; it is set up personally. Understand that government incentives are designed to encourage retirement savings.

• 401k, 403B, and 457 accounts are employer-sponsored.
• IRA stands for Individual Retirement Account, a personal retirement account.
• Open and fund an IRA or Roth IRA if your employer doesn't offer a retirement plan.
• The government provides incentives to encourage saving for retirement.