human
What's the difference between an IRA and a 401k?
assistant
An IRA is an Individual Retirement Account. A 401k is a type of retirement plan offered by many employers, which allows employees to save for retirement. IRAs are funded with pre-tax dollars and allow individuals to make contributions up to certain limits each year. 401ks are funded with post-tax dollars and require employees to pay taxes on their contributions before they can be withdrawn.