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What is the difference between a 401(k) and a pension plan?
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The main difference between a 401(k) and a pension plan is that a 401(k) is an individual retirement account (IRA), which allows you to save for retirement on your own, while a pension plan is a type of employer-sponsored retirement savings plan in which an employee's contributions are pooled with those of other employees. A 401(k) typically offers more flexibility than a pension plan, as it can be used for a variety of investment options and does not require the employee to wait until they reach a certain age before they can access their funds.