Skip to content

Differences Between a Roth 401(k) and a Roth IRA

You can have both a Roth 401(k) account and a Roth IRA account. The contribution limits are separate.

 

  1. Employer contributions and earnings are taxable when distributed.
  2. Amounts rolled over from an employer qualified plan or 403(b) plan, plus earnings on the amount rolled over, also have unlimited creditor protection. Amount is scheduled to be adjusted in April 2025.
  3. Or from the time you contributed to a previous employer's Roth 401(k) plan, if you rolled over your balance from that plan to the current plan.
  4. Depending on plan terms. Taxes and potential penalties apply to earnings paid in a nonqualified distribution.
  5. Taxable conversion.

 

Cross Border Wealth is a SEC-registered investment adviser which may only transact business in those jurisdictions in which it is registered or qualifies for an exemption or exclusion from registration requirements. 

Cross Border Wealth may discuss and display charts, graphs, formulas, stock, and sector picks which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. This specific information is limited and should not be used on their own to make investment decisions. 

All information provided in this article is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investment, or investment strategies. Please ensure to first consult with a qualified financial adviser and or tax professional. Further, please note that while said information has been obtained from known sources which are believed to be reliable, none of these are guaranteed.