human
I'm having trouble deciding between a 401K and an IRA. What is the difference?
assistant
The main difference between a 401k and an IRA is that a 401k is funded by your employer while an IRA is funded by you. A 401k offers more investment options than an IRA, as it typically allows you to invest in stocks, bonds, mutual funds, and other investments. An IRA does not offer these options and instead provides tax-deferred growth on contributions made with after-tax dollars. Additionally, 401ks have stricter contribution limits than IRAs, so if you're looking for a larger retirement savings plan, a 401k may be better suited.