Is The 401K The Same As An IRA? 
Both of these plans involve pre-tax contributions . A 401 -LRB- k -RRB- is an employer sponsored plan . It is compliant with ERISA and is governed by a plan . An Individual Retirement Account -LRB- IRA -RRB- is an individual plan that is not related to your employment . The limits to the program are prescribed by the Internal Revenue Code . The 401 -LRB- k -RRB- plan may have employer contributions , the IRA does not . The 401 -LRB- k -RRB- plan has much higher limits that participants can make to the plan . A non-working spouse can have an IRA . 