1. Tax Treatment: Both 401(k) plans and GOLD IRAs offer tax-deferred growth, but contributions to a 401(k) are typically pre-tax, whereas Gold IRA contributions are usually made with after-tax dollars, depending on whether the IRA is traditional or Roth.
2. Contribution Limits: 401(k) plans have higher contribution limits compared to IRAs. For 2024, the limit for 401(k) plans is $22,500, while the limit for IRAs (including Gold IRAs) is $6,500, with a catch-up contribution of $1,000 for those aged 50 and above.
3. Investment Flexibility: A 401(k) plan offers a curated selection of investments chosen by the plan provider, while a Gold IRA provides more control over specific physical assets, though it requires adherence to IRS regulations regarding eligible investments.
4. Risk and Stability: 401(k) investments are subject to market risk and can fluctuate with the stock market’s performance. Gold IRAs, while also having some price volatility, are generally seen as a more stable investment during economic downturns.
