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Do I Need An IRA If I Have A 401(k)?

With all the different types of accounts you have to pick from, what's the right choice when it comes to retirement accounts? In many cases, you don't need to choose one over the other – we see value in exploring if an IRA may be right for you even if you already contribute to a 401(k).

While 401(k)s and IRAs help you save for retirement in a tax-advantaged manner, they differ in important ways.


401(k)s are employer-sponsored retirement plans that are part of an employee's benefits package. Many employers will match your 401(k) contributions up to a certain percentage or dollar amount. In most cases, your 401(K) is held at an investment firm of your employer's choice and may have certain investment options.

Ideally, you should contribute at least enough to earn the match from your employer.


Based on your situation, you can determine whether to continue adding money to your 401(k) and/or open an Individual Retirement Account (IRA). You can open an IRA at most banks and investment firms. These accounts are not tied to your employer and are transferable between institutions. Though there are some limitations, most people can fund an IRA.

IRAs may also allow you more flexibility in your investment choices, since you're able to choose the firm you invest with as well as the types of investments that make sense for you. Learn more about an Edward Jones IRA.

How we can help

With so many different ways to save for retirement, it can be difficult to figure out which ones make the most sense for you. Your Edward Jones financial advisor can help break down your options and help you decide which ones fit your specific situation and goals.

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