Solo 401k Webinar – Deep Dive Compare Self-directed Roth 401k VS. Roth IRA

Roth 401k vs Roth IRA

Please check out our webinar for an in-depth discussion of the differences between self-directed Roth 401k vs. Roth IRA.

Roth 401k vs Roth IRA

  • Technical Differences
  • Practical Considerations
  • How to get more info about your situation

Compare Roth IRA vs. Roth Solo 401k

Compare Roth IRA vs. Roth Solo 401k

Compare Roth IRA vs. Roth Solo 401k

Compare Roth IRA vs. Roth Solo 401k

Compare Roth IRA vs. Roth Solo 401k

Roth IRA vs. Roth 401k –
Practical Considerations

  • Am I self-employed? Do I have full-time employees in my business? Roth Solo 401k:
    • Must be self-employed with no full-time w-2 employees
    • Roth IRA:
    • No self-employment requirement
    • An owner of a business with full-time employees is eligible
  • Do I want to make high contributions?
    • Roth Solo 401k:
      • For 2020:
        • $19,500 or $26,000 (if age 50 or older)
        • Up to $57,000 or $63,500 if plan allows for Mega Backdoor Roth
    • Roth IRA:
      • For 2020:
        • $6,000
        • $7,000 (if age 50 or older)
  • Will I need money before I retire?
    • Roth Solo 401k:
      • Non-qualified Roth 401k Distribution – taxes on the gains
      • Solo 401k participant loan up to 50% of the balance not to exceed $50,000
    • Roth IRA:
      • Non-qualified Roth IRA Distribution – no taxes on the contributions
      • Loan is not allowed
  • Am I 72 years of age or older?
    • Roth Solo 401k:
      • Required Minimum Distribution
      • May rollover to Roth IRA
    • Roth IRA:
      • No Required Minimum Distribution
  • Do I want to invest in alternative investments?
    • Roth Solo 401k:
      • Self-directed Solo 401k provider
      • Direct Checkbook Control
      • UBIT/UDFI exception for income from debt-financed real estate investment
    • Roth IRA:
      • Specialty Trust Company/Provider
      • Checkbook Control via Roth IRA LLC
      • No UBIT/UDFI exception for income from debt-financed real estate investment

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About George Blower

I have the privilege of educating our clients about our products and services so that they can make informed and confident decisions about their financial future. Prior to joining My Solo 401k Financial, I served as the general counsel for a subsidiary of a Fortune 500 financial services company. Learn more about George Blower and My Solo 401k Financial >>

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