Traditional retirement plans can be individual retirement accounts (IRAs) or 401(k)s. These tax-deferred retirement plans allow you to contribute pre-tax dollars to an account. With a traditional IRA or 401(k), you only pay taxes on your investments when you withdraw from the account.
Secondly, is a 401K plan an IRA?
While both plans provide income in retirement, each plan is administered under different rules. A 401K is a type of employer retirement account. An IRA is an individual retirement account.
Regarding this, is pers an IRA?
PERS retirement plans are generally pretax, meaning you haven’t paid taxes on the money you’ve been stashing away in the plan. … A Roth IRA is a post-tax retirement plan, meaning you pay taxes on your contributions when you deposit them so you can take the money out tax-free when you retire.