Let's quickly recap the major retirement accounts. A 401(k) is tied to your employer and often comes with a valuable match. An IRA is an individual account with two main tax flavors: Traditional and Roth.

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Ready to practice navigating these powerful tools?

Type

Sort Into Boxes

Practice Question

Let's practice distinguishing between a 401(k) and an IRA. Sort these features into the correct account type.

Labels

• First Box Label: 401(k) Feature
• Second Box Label: IRA Feature

First Box Items

• Employer match
• Tied to your job
• Higher contribution limit
• Plan options are limited

Second Box Items

• Opened individually
• No employer match
• Lower contribution limit
• Wide investment choice

Type

Swipe Left or Right

Practice Question

Let's review the tax differences between Traditional and Roth accounts. Swipe each statement to the correct account type.

Labels

• Left Label: Traditional
• Right Label: Roth

Left Label Items

• You get a tax deduction in the year you contribute.
• You pay income taxes on withdrawals in retirement.
• Better if you're in a high tax bracket now.
• Your account grows tax-deferred.

Right Label Items

• Your withdrawals in retirement are completely tax-free.
• You pay taxes on contributions in the current year.
• Better if you're in a low tax bracket now.