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 investment options than an IRA and can be used to save for retirement as well as other goals such as education or home purchase. An IRA does not have any restrictions on how it can be invested.