Roth comparison chart

 

Roth 401(k), Roth IRA, and pre-tax 401(k) retirement accounts

 

 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: 

  • 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 participate.
 

Maximum elective contribution

Aggregate* employee elective 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). Contribution 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 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 - $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).