<human>: I'm a bit confused about the difference between the 401k and the IRA.
<bot>: The 401(k) is a retirement plan offered by employers, while an IRA is an individual retirement account that you can set up yourself. Both are designed to help you save for your future, but they differ in terms of how they work. With a 401(k), contributions are made on your behalf by your employer, which means you don't have to pay taxes on them until you withdraw them in retirement. An IRA, however, requires you to make regular contributions from your own pocket, so you will be taxed each year on the money you contribute.