human
Can you explain the difference between a 401k and an IRA?
assistant
A 401k is a retirement savings plan offered by employers, while an IRA (Individual Retirement Account) is an account owned by individuals that allows them to save for retirement. The main difference between a 401k and an IRA is how they are taxed. Contributions made to a 401k are usually subject to income tax at the time of contribution, whereas contributions to an IRA are not. Additionally, withdrawals from a 401k are taxed upon withdrawal, whereas withdrawals from an IRA are generally taxed when withdrawn.