human
Can you explain the difference between a 401k, IRA, or Roth IRA?
assistant
A 401(k) is an employer-sponsored retirement savings plan. It allows employees to save pre-tax money and defer taxes until they withdraw the funds in retirement. An IRA is a similar type of retirement account that can be funded with after-tax dollars. Unlike a 401(k), contributions to an IRA are not tax deductible. A Roth IRA is a type of retirement account that has special tax rules. Contributions to a Roth IRA are made with after-tax dollars, but withdrawals are tax free if certain conditions are met.