|Roth IRA||Roth Solo 401k|
|Self Trustee||IRA custodian required by law||Solo 401k owner can serve as trustee and custodian|
|Participation||Anyone with earned income||Only if the Solo 401k plan document allows for Roth Solo 401k contributions|
|Contribution limits||For 2020|
$7,000 (if age 50 or older)
$26,000 (if age 50 or older)
|Recharacterization of rolled over amounts||Permitted for conversions processed prior to the Jobs Act of 2017||Not permitted|
|Required Minimum distributions||Only after original IRA owner’s death||Yes|
|Tax on nonqualified distributions||Nonqualified distributions are distributed in following order:|
|Nonqualified distributions are pro-rated between Roth Solo 401k contributions (nontaxable) and gains (taxable)|
|Withdrawals||Anytime. Maybe subject to tax if not a qualified distribution.||Only when allowed by the terms of the plan. Subject to tax if not a qualified distribution.|
|Loans||No||Yes, if plan contains feature|
|5-year holding period for qualified distributions||Begins January 1 of the year a contribution is made to any Roth IRA||Separate for each Roth Solo 401k account and begins on January 1 of the year contributions made to that account. If one Roth Solo 401k is rolled into another, the earlier start date applies.|
|Beneficiary||Anyone||Anyone but, if married, spouse must consent to nonspouse beneficiary|
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