<human>: I'm a bit confused about the difference between the 401k and the IRA.
<bot>: The 401(k) is an employer-sponsored retirement savings plan, while the IRA (Individual Retirement Account) is a personal retirement savings account funded with pre-tax money. Both are designed to help you save for retirement, but they differ in several ways. The 401(k) offers more tax advantages than the IRA because it is taxed differently, allowing you to save more money over time. Additionally, employers often match contributions made to a 401(k), which can significantly increase your retirement savings potential. Finally, the 401(k) allows you to withdraw funds before retirement age without penalty, whereas the IRA does not.