A 401(k) and an IRA are both retirement savings tools, but they differ in how they’re set up and managed. A 401(k) is typically offered by employers and may include company matching contributions, while an IRA is opened individually and offers more control over investment choices. Contribution limits, tax advantages, and withdrawal rules also vary between the two. Understanding these differences helps you choose the right option—or combine both—for a stronger long-term retirement strategy.