human
Which is better, a 401k or a roth ira?
assistant
A 401(k) and Roth IRA are both retirement savings plans. The main difference between them is how they are taxed when you withdraw money from them. With a 401(k), your contributions are made with pre-tax dollars so the money grows tax-deferred until it's withdrawn. With a Roth IRA, contributions are made with after-tax dollars, but the money grows tax-free. When you withdraw money from either plan, you pay taxes on the withdrawal amount.