One benefit I haven't seen mentioned is that you can often borrow against a 401k and I don't believe that's as common (impossible?) with an IRA. The benefit of borrowing against your 401k is that the interest goes back into your account. The downside is that you have a maximum of five years to repay it, and of course you're repaying it with after-tax dollars. Unlike a withdrawal, it's penalty-free.
Roth IRAs can be borrowed against for qualified expenses, like buying a home or paying for sudden, large medical expenses. There are a bunch of other, rarer cases too.
Comments
One benefit I haven't seen mentioned is that you can often borrow against a 401k and I don't believe that's as common (impossible?) with an IRA. The benefit of borrowing against your 401k is that the interest goes back into your account. The downside is that you have a maximum of five years to repay it, and of course you're repaying it with after-tax dollars. Unlike a withdrawal, it's penalty-free.
Roth IRAs can be borrowed against for qualified expenses, like buying a home or paying for sudden, large medical expenses. There are a bunch of other, rarer cases too.