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What's the difference between a 401k, IRA, and a Roth IRA?
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A 401(k) is a retirement savings plan offered by an employer that allows employees to save for retirement. An Individual Retirement Account (IRA) is similar in that it’s a retirement savings plan, but it can also be used as a tax shelter. Unlike a 401(k), contributions to an IRA are not matched by your employer, so they are typically lower. Contributions to a Roth IRA are made with after-tax dollars and withdrawals in retirement are free from federal taxes.