401k vs IRA vs Taxable Brokerage

by Anonymous

Choosing the right investment account structure is fundamental to long-term wealth building. Each account type offers distinct tax advantages, contribution limits, and withdrawal rules. Your optimal mix depends on income level, employer match availability, and when you plan to access funds. Most financial planners recommend maximizing tax-advantaged accounts before turning to taxable brokerage accounts.

401(k)

$23,500
2026 contribution limit
Pre-tax or Roth
tax treatment
Yes, common
employer match
10% before 59½
early withdrawal penalty
Limited to plan menu
investment options
Yes, at age 73
required minimum distributions

IRA

$7,000
2026 contribution limit
Pre-tax or Roth
tax treatment
No
employer match
10% before 59½
early withdrawal penalty
Broad selection
investment options
Yes for Traditional, No for Roth
required minimum distributions

Taxable Brokerage

Unlimited
2026 contribution limit
Capital gains taxed
tax treatment
No
employer match
None
early withdrawal penalty
Unrestricted
investment options
No
required minimum distributions

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