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401(a) vs. 401(k)

These two retirement accounts are similar, but you'll likely have access to only one or the other.

By Kailey Hagen – Updated Nov 22, 2024 at 3:47PM

Key Points

  • 401(a) plans, aimed mainly at selective government and nonprofit employees, allow both employer and employee contributions.
  • 401(k) offers more diverse investments but both plans restrict withdrawals before age 59 1/2, penalizing early withdrawals.
  • The max annual contribution for both plans in 2024 is $69,000 ($70,000 in 2025), with an added catch-up option for those over 50.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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