Feature 401(a) Plan 401(k) Plan Who It’s For Public-sector and nonprofit employees (e.g., teachers, government workers) Private-sector employees Who Controls It Employer — sets contribution rules and investment menu Employee — chooses how much to contribute and where to invest Employee Contributions Usually mandatory pretax contributions (may allow after-tax voluntary) Voluntary pretax or Roth contributions Employer Contributions Pretax contributions reduce taxable income; withdrawals are taxed in retirement Optional — usually matching up to a limit Contribution Limits (2025) $70,000 total (employer + employee combined) $70,000 total; employee deferrals capped at $23,500 (+$7,500 catch-up if 50+) Catch-Up Contributions (50+) Not available Yes, up to $7,500 extra Investment Options Narrow…