human
What are the advantages of a 401(k) plan vs. a traditional IRA?
assistant
The main advantage of a 401(k) plan is that it offers tax-deferred growth, meaning you won't pay taxes on any contributions or earnings until you withdraw them in retirement. This can be especially beneficial if your income is high and you're looking to maximize your savings potential. Additionally, many employers offer matching contributions, which can further increase your savings rate. A traditional IRA, on the other hand, typically has more limited contribution options, but does allow for tax-deductible contributions.