human
I'm a bit confused about the difference between the 401k and the IRA.
assistant
The main difference between an IRA and a 401(k) is that with an IRA, you can contribute pre-tax money while with a 401(k), your employer will match some of your contributions up to a certain limit. Additionally, IRAs have more flexibility in terms of investments than 401(k)s do. With a 401(k), you are limited to investing in mutual funds or company stock; whereas with an IRA, you can invest in stocks, bonds, and other securities.