An individual retirement account (IRA) is a type of savings account.
It remains one of the most effective ways to save for the future. There are different investment options in an IRA that allow your money to grow either tax-free or tax deferred.
Why choose an IRA over a 401(k)?
The simple answer is: 401(k) plans are more dependent on your employer.
An IRA only needs for you to contact a financial institution, and setup the account. 401(k) plans can only be offered by employers.
With that said, new rules allow you to invest over 200% more in a 401(k) over an IRA plan.