You can, and probably will, end up having multiple retirement accounts, but there are many benefits to maximizing your 401(k) contributions. The biggest difference between the two is contribution limits: for 2023, an individual can contribute up to $22,500 to their 401(k) account ($30,000 if they are 50 or older), whereas the contribution limit on IRAs is $6,500. If your employer matches your employee deferral contributions, this increases the amount that you are able to save for retirement ...