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What is the difference between an IRA and a 401(k)?
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The main difference between an IRA and a 401(k) is that an IRA is funded with pre-tax income, while a 401(k) is funded with post-tax income. An IRA offers more flexibility in terms of investment options than a 401(k), as it allows you to invest in stocks, bonds, mutual funds, and other investments. A 401(k) typically has more restrictions on your investment options, but does offer tax advantages when you withdraw money.