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What is the difference between a 401(k) and an IRA?
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The main difference between a 401(k) and an IRA is the way they are taxed. With a 401(k), contributions are made with pre-tax income, meaning that you don't pay taxes on them until you withdraw the money in retirement. An IRA, on the other hand, allows you to make contributions with post-tax income, which means you will be taxed when you withdraw the money in retirement.