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Public.com – Get free stock just for signing up for this investment app.
Question: What is the difference between a 401(k) and an IRA?
Answer: A 401(k) is a retirement savings plan offered by an employer, while an IRA (Individual Retirement Account) is a personal retirement savings account that you can open on your own. 401(k) contributions are typically made through payroll deductions, while IRA contributions are made directly by the account holder. Both types of accounts offer tax advantages and can be used to save for retirement, but they have different contribution limits and withdrawal rules.
