Americans have invested more than $18.2 trillion into Individual Retirement Accounts (IRAs) through March, surpassing the $13.8 trillion held in 401(k) plans, according to the Investment Company Institute. While IRAs are a popular choice for retirement savings, a growing number of Americans—about 80 percent—are concerned about a potential retirement crisis. This shift toward IRAs might play a role in that concern, as they differ in structure and regulation from 401(k)s. IRAs and 401(k)s are both retirement savings vehicles, but they operate under different rules. One major distinction is the concept of fiduciary responsibility, which refers to a financial firm's obligation to act in the best interest of the investor. 401(k) plans are governed by the Employee Retirement Income Security Act (ERISA), which sets strict guidelines for how these workplace retirement plans are managed. This includes requirements for selecting investments, controlling costs, and ensuring that decisions are made with the participant's well-being in mind. In contrast, traditional and Roth IRAs are not subject to the same fiduciary rules. Investors in IRAs have more control over their accounts, including choosing where to hold the account and which investments to include. However, this increased freedom also places more responsibility on the individual to research the quality of the firm managing the IRA, the investments within the account, and the fees involved. The IRS suggests that investors check with their state securities regulator to review any complaints about the investment or the person selling it. Both IRAs and 401(k)s offer some level of protection in the event of bankruptcy, but the extent differs. 401(k) funds are fully protected, meaning a court cannot take any portion of the money. For IRAs, federal regulations provide protection up to $1.7 million per person, according to some retirement savings experts. If a firm managing a 401(k) goes bankrupt, the employee’s account is fully protected, including any employer contributions. However, if an IRA provider goes bankrupt, only up to $500,000 in assets and $250,000 in cash are federally protected, as outlined by the Securities Investor Protection Corporation. Financial advisors often recommend that individuals prioritize contributing to their 401(k) first, especially if their employer offers a matching contribution. This is because employer matches are essentially free money. Once the match is secured, the next dollar should be invested where it provides the best combination of tax advantages, flexibility, and low costs. As retirement savings grow, individuals should continue to increase their contributions over time to build a more secure financial future.