human
What's the difference between a 401k and a IRA?
assistant
The main difference between a 401(k) and an Individual Retirement Account (IRA) is that a 401(k) is offered by employers, while an IRA is typically funded with pre-tax income. A 401(k) also has more stringent contribution rules than an IRA, which can allow for higher contributions in certain circumstances. Additionally, withdrawals from a 401(k) are subject to taxes and fees whereas withdrawals from an IRA are usually tax-free.