Question

In what way does a 401(k) differ from an individual retirement account (IRA)? A 401(k) is created through an individual’s employer. A 401(k) can be created by individuals who deposit money. A 401(k) allows consumers to contribute before taxes. A 401(k) is a good long-term investment strategy.

Answer 1

A 401(k) is created through an individual's employer. This is a type of retirement savings plan that is directly sponsored by an employer. This type of retirement plan allows or lets workers save and invest parts of their paychecks before it is deducted with taxes. Taxes can only be paid when the money is directly withdrawn from the employees' accounts. 

Answer 2

A) 401(k) is created through an individual's employer