human
Can you explain the difference between a 401k, IRA, or Roth IRA?
assistant
A 401(k) is an employer-sponsored retirement savings plan that allows employees to save pre-tax dollars. An Individual Retirement Account (IRA) is a type of retirement account that allows individuals to contribute up to $6,000 per year and receive tax benefits when they withdraw money in retirement. The most common form of IRA is the Traditional IRA, which allows contributions from both employers and employees. A Roth IRA is another type of retirement account that allows individuals to make contributions with after-tax dollars and receive tax-free withdrawals in retirement.