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/single $161,000 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 $23,000 in 2024; $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 and 2024 for employees age 50 or over). Contribution limited to $7,000 plus an additional $1,000 for employees age 50 or older in 2024; $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 - $23,000 in 2024; $22,500 in 2023; $20,500 in 2022; $19,500 in 2021 ($30,500 in 2024; $30,000 in 2023; $27,000 in 2022; $26,000 in 2021 if you're eligible for catch-up contributions).
