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What's the difference between a 401k and a IRA?
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The main difference between a 401(k) and an Individual Retirement Account (IRA) is their tax treatment. A 401(k) is funded with pre-tax money from your salary, meaning that you don't pay taxes on it until you withdraw the money in retirement. An IRA, on the other hand, is funded with after-tax money, so you do pay taxes on contributions but not when you withdraw the money during retirement. Additionally, 401(k) plans typically have more investment options than IRAs, such as mutual funds and stocks.