<human>:  What are the differences between an IRA and a 40(k)?
<bot>: The primary difference between an IRA and a 401(k) is their contribution limits. An IRA has an annual contribution limit of $6,000 for individuals under age 50, while 401(k)s have an annual contribution limit of up to $19,500 for the same age group. An IRA also typically has more investment options than a 401(k), as most 401(k)s are limited to the investments offered by the employer. An IRA also has different eligibility requirements than a 401(k), and investing in one does not necessarily mean you are eligible for the other. Additionally, an IRA is an individual retirement account, while a 401(k) is an employer-sponsored retirement account.