An often-overlooked difference between a 401(k) and an IRA has to do with IRS rules regarding taxes on distributions. The IRS requires that 20% of distributions from a 401(k) be withheld for federal taxes.When you take a distribution from an IRA, you can elect to have no tax withheld....
A 401K allows employees to contribute a portion of their salary towards retirement and enjoy tax benefits on their contributions. However, when you leave your job or retire, you might be wondering what to do with your 401K. In such cases, rolling your 401K into a self-directed IRA can be ...