Question: what is the difference between a simple ira and a 401(k)?
Answer: The differences between a 401(k) and a SIMPLE IRA A 401(k) plan can be offered by any type of employer, but a SIMPLE IRA is designed for small businesses with 100 or fewer employees. ... SIMPLE IRAs require an employer contribution. 401(k) plans do not, although many employers do choose to make contributions.