<human>: Can you explain the difference between a 401k and an IRA?
<bot>: A 401k is a retirement savings plan that employers can offer to their employees. It’s funded by both employee contributions and employer contributions, and it offers tax benefits. An IRA is also a retirement savings plan, but it’s funded solely by employee contributions. Contributions are made with pre-tax money, which means they reduce your taxable income in the year you contribute.