401(a) vs. 401(k): What's the Difference?

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

By Kailey Hagen – Updated Sep 10, 2025 at 9:34 AM | Fact-checked by Margo Winton Parodi

Key Points

401(a) plans are generally only available to government and nonprofit employees.
Both plan types restrict withdrawals before age 59 1/2, penalizing early withdrawals.
Investment choices in 401(a) and 401(k) plans are primarily set by employers, with 401(a) options often more limited.

A 401(a) and a 401(k) are both employer-sponsored retirement plans, each named after a part of the tax code. The key differences between the two come down to who's eligible to participate and who dictates how much employees contribute to each account. We'll explore how the two accounts compare in terms of contribution limits, investment options, and more.

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An infographic comparing the similarities and differences between 401(k) and 401(a) retirement plans. — Image source: The Motley Fool.

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About the Author

Kailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning. Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.

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