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What is the difference between a 401(k) and an IRA?
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A 401(k) is a retirement savings plan offered by employers. An Individual Retirement Account (IRA) is also a type of retirement savings plan, but it is typically offered by financial institutions or brokerage companies. The main difference between a 401(k) and an IRA is that a 401(k) is funded with pre-tax contributions from the employee's salary, while an IRA is funded with after-tax contributions from the employee's income.