What are the main differences between a 401K and a Roth IRA?  Well, a 401K is a contribution plan that a person contributes to through an employer, and the employer normally will match the contribution.  401K plans also allow employees to defer current taxation on a person’s salary; taxes are not paid on this money until the money is withdrawn from the account.  A Roth IRA is an individual retirement plan, the contributions into a Roth IRA are not tax-deductible