human
I'm a little confused about the difference between a 401k and a IRA. Which one is better?
assistant
A 401k is a retirement savings plan offered by an employer that allows employees to save pre-tax money. An IRA (Individual Retirement Account) is a retirement savings account that allows individuals to save money before taxes are taken out of their paycheck. Generally, IRAs offer more flexibility than 401ks because they can be used for a variety of purposes such as saving for college tuition or purchasing a home.