Roth comparison chart | Internal Revenue Service (original) (raw)
Roth 401(k), Roth IRA, and pre-tax 401(k) retirement accounts
| Issue | Designated Roth 401(k) | Roth IRA | Pre-tax 401(k) |
|---|---|---|---|
| Contributions | Designated Roth employee elective contributions are made with after-tax dollars. | Roth IRA contributions are made with after-tax dollars. | Traditional, pre-tax employee elective contributions are made with before-tax dollars. |
| Income limits | No income limitation to participate. | Income limits: 2024 – modified AGI married 240,000/single240,000/single 240,000/single161,000 2023 – modified AGI married 228,000/single228,000/single 228,000/single153,000 2022 – modified AGI married 214,000/single214,000/single 214,000/single144,000 2021 - modified AGI married 208,000/single208,000/single 208,000/single140,000 | No income limitation to participate. |
| Maximum elective contribution | Aggregate* employee elective contributions limited to 23,000in2024;23,000 in 2024; 23,000in2024;22,500 in 2023; 20,500in2022;20,500 in 2022; 20,500in2022;19,500 in 2021 (plus an additional 6,500in2022and2021foremployeesage50orover;additional6,500 in 2022 and 2021 for employees age 50 or over; additional 6,500in2022and2021foremployeesage50orover;additional7,500 in 2023 and 2024 for employees age 50 or over). | Contribution limited to 7,000plusanadditional7,000 plus an additional 7,000plusanadditional1,000 for employees age 50 or older in 2024; 6,500plusanadditional6,500 plus an additional 6,500plusanadditional1,000 for employees age 50 or older in 2023; 6,000plusanadditional6,000 plus an additional 6,000plusanadditional1,000 for employees age 50 or over in 2021 and 2022. | Same aggregate* limit as designated Roth 401(k) account |
| 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 designated Roth 401(k) account and can have a qualified distribution for a first-time home purchase. | Withdrawals of contributions and earnings are subject to federal and most state income taxes. |
| Required distributions | Distributions must begin no later than age 72 (age 70 ½ if reached age 70 ½ before January 1, 2020), unless still working and not a 5% owner. | No requirement to start taking distributions while owner is alive. | Same as designated Roth 401(k) account. |
* This limitation is by individual, rather than by plan. You can split your annual elective deferrals between designated Roth contributions and traditional pre-tax contributions, but your combined contributions can’t exceed the deferral limit - 23,000in2024;23,000 in 2024; 23,000in2024;22,500 in 2023; 20,500in2022;20,500 in 2022; 20,500in2022;19,500 in 2021 ($30,500 in 2024; 30,000in2023;30,000 in 2023; 30,000in2023;27,000 in 2022; $26,000 in 2021 if you're eligible for catch-up contributions).
Page Last Reviewed or Updated: 03-Sep-2024