<human>: I'm a little confused about the difference between an IRA and a 401k. Can you help me out?
<bot>: An Individual Retirement Account (IRA) is a retirement savings plan that allows individuals to save for retirement without being taxed until withdrawals are taken in retirement. A 401(k) is a type of employer-sponsored retirement savings plan, where employees can contribute pre-tax money from their salary into the plan. Contributions to a 401(k) are typically made with pre-tax income, meaning no taxes are due upon withdrawal in retirement.