<human>:  What is the difference between a 401k and an IRA account?
<bot>: A 401k is a retirement savings plan which is sponsored by an employer, usually allowing employees to contribute a portion of their wages to investments. An IRA (Individual Retirement Arrangement) is a retirement savings plan that allows individuals to make contributions to investments on their own. Contributions made to a 401k are typically tax-deferred, while contributions made to a traditional IRA may be tax-deductible. Additionally, a 401k typically provides a range of investment options chosen by the employer, while an IRA often provides a wider variety of options to individual investors.