dmertz
Level 15

Retirement tax questions

This is correct behavior.  The same portion of net earnings can support both a Roth 401(k) contribution and a Roth IRA contribution because only deductible contributions to your solo 401(k) reduce the amount of income that you can apply to an IRA contribution, per the tax code.  A Roth contribution to your solo 401(k) is not deductible.

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