human
I'm a little confused about the difference between a 401k and a IRA. Which one is better?
assistant
A 401k is typically offered by an employer, while an Individual Retirement Account (IRA) is usually established by individuals themselves. The main difference between these two accounts is that a 401k offers more investment options than an IRA, such as mutual funds or stocks. Additionally, employers may match contributions made to a 401k, whereas there are no similar incentives for contributing to an IRA. Ultimately, it depends on your individual financial situation and goals when deciding which type of account is best suited for you.