Roth Solo 401k vs Roth IRA Comparison Chart

October 17, 2014 | By Mark Nolan

Last Updated 2/6/2023

Comparison of Roth Solo 401(k), Roth IRA, and Pre-tax Solo 401(k)
Characteristic	Roth Solo 401k Account	Roth IRA	Pre-Tax Solo 401(k)
Contributions	Employee (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 Limits	No 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 Contribution	Aggregate* 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 Withdrawals	Withdrawals 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 Distributions	Distributions 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.