<human>:  What is the difference between a 401K and an IRA?
<bot>: The difference between a 401K and an IRA is that a 401K is an employer-sponsored retirement plan that allows employees to contribute a certain portion of their salary to the plan, while an IRA or Individual Retirement Account is an account you can set up through a financial institution. It can be used to save and invest for retirement. With a 401K, employers may match a certain portion of employee contributions, while with an IRA, you are responsible for any contributions and fund management.