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What is the difference between a 401(k) and a IRA?
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The main difference between a 401(k) and an Individual Retirement Account (IRA) is that a 401(k) is offered by employers, while an IRA is typically funded by individuals. A 401(k) can provide more tax-advantaged growth than an IRA due to its higher contribution limits, but it also has additional restrictions on withdrawals. An IRA offers more flexibility in terms of withdrawal options, but may not offer as much tax-advantaged growth potential.