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Is Roth 401k contributions the same as Roth IRA?

 
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Is Roth 401k contributions the same as Roth IRA?

A 401(k) must be sponsored by an employer, and the only way to make contributions is via payroll deduction.  

 

An IRA is a private account you set up with a bank, stock broker or investment advisor.  

 

A Roth IRA and a "Roth" 401(k) (a post-tax 401(k)) are similar in that you contribute money after taxes--you pay taxes on the money now and don't take a tax deduction for contributions.  When you retire, you withdraw the money tax-free.

 

However, a Roth IRA and a post-tax 401(k) have different contribution rules, different contribution limits, and different withdrawal rules.

 

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Is Roth 401k contributions the same as Roth IRA?

No.  401K Contributions come out of your paychecks.  You only enter it from your W2.

 

 IRA Contributions you make yourself outside of work.  You do enter IRA under Deductions & Credits.  

Is Roth 401k contributions the same as Roth IRA?

A 401(k) must be sponsored by an employer, and the only way to make contributions is via payroll deduction.  

 

An IRA is a private account you set up with a bank, stock broker or investment advisor.  

 

A Roth IRA and a "Roth" 401(k) (a post-tax 401(k)) are similar in that you contribute money after taxes--you pay taxes on the money now and don't take a tax deduction for contributions.  When you retire, you withdraw the money tax-free.

 

However, a Roth IRA and a post-tax 401(k) have different contribution rules, different contribution limits, and different withdrawal rules.

 

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