Roth Solo 401k vs Roth IRA Comparison Chart

Last Updated 2/6/2023

Comparison of Roth Solo 401(k), Roth IRA, and Pre-tax Solo 401(k)
CharacteristicRoth Solo 401k AccountRoth IRAPre-Tax Solo 401(k)
ContributionsEmployee (salary deferral) contributions are made with post-tax dollars.Roth IRA contributions are made with post-tax dollars.Employee (salary deferral) and/or employer (profits sharing) contributions are made with pre-tax dollars.
Income LimitsNo income limitation to contribute.

Income limits: 

  • 2023 – modified AGI married $228,000/single $153,000
  • 2022 – modified AGI married $214,000/single $144,000

  • 2021 – modified AGI married $208,000/single $140,000

No income limitation to contribute.
Maximum Elective ContributionAggregate* employee (salary deferral) contributions limited to $22,500 in 2023; $20,500 in 2022; $19,500 in 2021 (plus an additional $6,500 in 2022 and 2021 for employees age 50 or over; additional $7,500 in 2023 for employees age 50 or over).CContribution limited to $6,500 plus an additional $1,000 for employees age 50 or older in 2023; $6,000 plus an additional $1,000 for employees age 50 or over in 2021 and 2022.  Same aggregate* limit as Designated Roth Solo 401(k) Account; however, participant can also make a profit sharing (employer) contribution.
Taxation of WithdrawalsWithdrawals of contributions and earnings are not taxed provided it’s a qualified distribution – the account is held for at least 5 years and made:


  • On account of disability,
  • On or after death, or
  • On or after attainment of age 59½.
Same as Roth Solo 401k Account and can have a qualified distribution for a first time home purchase.Distributions of contributions and earnings are subject to Federal and most State income taxes.
Required DistributionsDistributions must start no later than age 73; however, No RMDs apply in 2024 and later years.No requirement to begin making distributions while owner is alive.Distributions must start no later than age 73
* This limitation is by individual, rather than by plan. You can split your annual elective deferrals between designated Roth solo 401k contributions and traditional pre-tax solo 401k contributions, but your combined contributions can’t exceed the deferral limit – $22,500 in 2023; $20,500 in 2022; $19,500 in 2021 ($30,000 in 2023; $27,000 in 2022; $26,000 in 2021 if you’re eligible for catch-up contributions). CLICK HERE TO VIEW educational video. 

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>


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