human
What is the difference between a 401k and a IRA?
assistant
The main difference between a 401k and an IRA is that a 401k is funded by your employer, while an IRA is funded by you. A 401k typically offers more tax benefits than an IRA, since contributions are made pre-tax and withdrawals are taxed at lower rates. However, with an IRA, you have more flexibility in terms of how to invest your money.