<human>:  What is the difference between an IRA and a 40(k)?
<bot>: The difference between an IRA and a 401(k) is that a 401(k) is an employer-sponsored retirement plan, while an IRA is an individual retirement plan that does not need to be sponsored by an employer. With a 401(k), you have the option to save before taxes, while with an IRA, you can choose either pre-tax or post-tax contributions. Additionally, 401(k) plans often have options for employer matching contributions and sometimes increased maximum annual contribution limits.