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What is the difference between an IRA and a 401k?
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An IRA (Individual Retirement Account) is a retirement savings account that allows individuals to save for retirement. A 401k (401(k)) is a type of employer-sponsored retirement plan that allows employees to set aside money from their salary before taxes are taken out. The money saved in an IRA can be used for any purpose, while the money saved in a 401k must be used solely for retirement purposes.