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Employees who don’t have access to a 401(k) or similar type of retirement account at work can contribute to an IRA, but the tax-deductible limit for IRA contributions is far lower and there is no employer match. The 401(k) contribution limit is $17,500 in 2013, $12,000 more than the $5,500 workers can contribute to IRAs. The disparity is even greater for workers age 50 and older who are eligible to contribute $23,000 to a 401(k), but only $6,500 to an IRA.
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