human
I'm a bit confused about the difference between the 401k and the IRA.
assistant
The main difference between a 401k and an IRA is that a 401k is offered by employers, while an IRA is an individual retirement account that allows you to save for retirement on your own. With a 401k, contributions are made with pre-tax money, meaning that taxes are paid when you withdraw the funds in retirement. An IRA does not offer such tax advantages but can be more flexible in terms of how much you contribute each year and the types of investments you can make.