"In favor of a 401(k), you can put a lot more away," says Karen Altfest, CFP, principal adviser and executive vice president of client relations for Altfest Personal Wealth Management, a fee-only financial planning firm based in New York City.
With a 401(k), you can save up to $17,500 in 2013. And you can go up to $23,000 if you're 50 or older. With an IRA this year, you can save up to $5,500, or $6,500 if you're 50 or older.
"So if you've got that money to put away, you're going to be able to put away a lot more," in a 401(k), says Altfest.
If you've already maxed out your 401(k) and still have income to save, "you might want to consider whether a traditional or Roth IRA might be right for you," she says.