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What are the differences between a 401k and a 401a?
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The main difference between a 401k and a 401a is that a 401a is an account offered by certain employers, which allows employees to save on a pre-tax basis. This means that contributions made to the 401a are not subject to federal income taxes until they are withdrawn at retirement. A 401k, on the other hand, is typically an individual retirement savings plan offered by employers, allowing workers to contribute up to a certain percentage of their salary before taxes. Contributions to 401ks are taxed when they are made, but withdrawals are usually tax-free in retirement.