Difference between 401(k) and IRA?

Question

My employer offers both traditional and Roth 401(k)s. What is the difference between this and an IRA? Can I still take money out tax free with a Roth 401(k)?

Answer 1

401K's can only be offered by your employer and typically have a company match. They also max out at $15,000 per year. Anybody can open up an IRA, there is no company match and they max out at $5,000 per year.