Roth Solo 401k Contributions

Under a qualified Roth Solo 401k contribution program, the amount of elective deferrals that a participant may may designate as a Roth Solo 401k contribution is limited to the maximum amount of elective deferrals excludable from gross income for the year ($18,000 for 2014, $24,000 if age 50 or over) less the total amount of the participant's elective deferrals not designated as Roth Solo 401k contributions.

Designated Roth Solo 401k deferrals are treated the same as pre-tax elective deferrals for most purposes, including:

• The annual individual elective deferral limit (total of all designated Roth Solo 401k contributions and traditional, pre-tax elective deferrals) of $18,000 for 2015, with an additional $6,000 if age 50 or over.
• Determining the maximum employee and employer annual contributions of the lesser of 100% of compensation or $53,000 for 2015 and subject to cost-of-living adjustments thereafter,
• Required distributions, and
• Elective deferrals not taken into account for purposes of deduction limits.

Visit Roth Solo 401k Distributions to learn more.

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