as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
why is there such disparity of max contribution limits between 401k accounts and regular ira accounts?
user
the investments offered in 401k are usually limited to a selection of mutual funds offered by a 401k provider.  the 401k providers and the mutual funds charge fees.  the mutual fund industry has a lobbying group that will push for increased 401k contributions to direct money into their mutual funds to collect fees.  the top 401 k provider in 2005 was fidelity.  it managed $337 billion in 401ks of which $334 billion was directed into mutual funds. although i would have to use some of the same providers to open an ira, i would not have to invest in the providers' mutual funds when i open an ira.  i can buy a stock and hold onto it for 10, 20, 50 years inside of my ira.  thus, the only fee the investment company would collect from me would be from when i purchased the stock and when i sold the stock.  not nearly as profitable as mutual fund fees.
assistant