IRA vs. 401(k) – Which one is the superior investment?

When it comes to retirement savings and investments, most workers will opt for 401(k) plans. However, Bankrate.com recently published five reasons as to why individual retirement accounts (IRAs) are better retirement vehicles for investors than traditional 401(k)s.

1. Larger and better selection of mutual funds
2. Reduce expense ratios and other costs
3. Option to invest in ETFs and individual stocks
4. Simpler access to Roth advantages
5. More options to withdrawing money without penalties

“So, which is better: an IRA or 401(k)?” Bankrate.com asks. “Both have much to recommend themselves, but some might argue that IRAs have several distinct advantages.”  In the end, it suggested that investors can have access to both an IRA and a 401(k).