Roth 401(k) and Roth IRA contributions both use after-tax dollars, but one is an employer-plan designated Roth account and the other is an individual retirement arrangement. In 2026 the IRS lists a $24,500 employee elective-deferral limit for 401(k) plans and a $7,500 combined IRA limit; Roth IRA eligibility can also be limited by modified AGI, while designated Roth 401(k) contributions have no income limit.
What roth 401k vs roth ira means
A Roth 401(k) is a designated Roth account inside an employer plan, while a Roth IRA is an individually opened retirement arrangement. This compares two Roth containers; Roth versus traditional compares when income tax is generally recognized.
| 2026 401(k) elective limit | $24,500 |
|---|---|
| 2026 combined IRA limit | $7,500 |
| Roth 401(k) example | $10,000 |
| Roth IRA example | $3,000 |
| Shared limit | None |
Roth 401(k) vs. Roth IRA: what is different if both use after-tax dollars?: worked numbers
A worker directs $10,000 to a Roth 401(k) and $3,000 to a Roth IRA. The amounts do not share one limit: the 401(k) contribution counts against the workplace elective-deferral limit and the IRA amount counts against the combined IRA limit. The Roth IRA deposit still requires taxable compensation and an income-eligibility check.
How to calculate roth 401k vs roth ira
Keep separate ledgers for workplace elective deferrals and IRA contributions. Compare plan investment choices, employer match rules, fees, access, and the applicable withdrawal rules before treating both labels as interchangeable.
Use related Calculatort tools when the inputs are known: 401(k) savings projection; retirement goal projection; fund-fee comparison.
Check the roth 401k vs roth ira inputs before acting
roth 401k vs roth ira record 1. In record 1, keep 2026 401(k) elective limit at $24,500 beside 2026 combined IRA limit at $7,500. At check 1, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 401(k) elective limit and 2026 combined ira limit.
roth 401k vs roth ira record 2. In record 2, keep 2026 combined IRA limit at $7,500 beside Roth 401(k) example at $10,000. At check 2, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 combined ira limit and roth 401(k) example.
roth 401k vs roth ira record 3. In record 3, keep Roth 401(k) example at $10,000 beside Roth IRA example at $3,000. At check 3, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth 401(k) example and roth ira example.
roth 401k vs roth ira record 4. In record 4, keep Roth IRA example at $3,000 beside Shared limit at None. At check 4, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth ira example and shared limit.
roth 401k vs roth ira record 5. In record 5, keep Shared limit at None beside 2026 401(k) elective limit at $24,500. At check 5, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated shared limit and 2026 401(k) elective limit.
roth 401k vs roth ira record 6. In record 6, keep 2026 401(k) elective limit at $24,500 beside 2026 combined IRA limit at $7,500. At check 6, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 401(k) elective limit and 2026 combined ira limit.
roth 401k vs roth ira record 7. In record 7, keep 2026 combined IRA limit at $7,500 beside Roth 401(k) example at $10,000. At check 7, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 combined ira limit and roth 401(k) example.
roth 401k vs roth ira record 8. In record 8, keep Roth 401(k) example at $10,000 beside Roth IRA example at $3,000. At check 8, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth 401(k) example and roth ira example.
roth 401k vs roth ira record 9. In record 9, keep Roth IRA example at $3,000 beside Shared limit at None. At check 9, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth ira example and shared limit.
roth 401k vs roth ira record 10. In record 10, keep Shared limit at None beside 2026 401(k) elective limit at $24,500. At check 10, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated shared limit and 2026 401(k) elective limit.
roth 401k vs roth ira record 11. In record 11, keep 2026 401(k) elective limit at $24,500 beside 2026 combined IRA limit at $7,500. At check 11, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 401(k) elective limit and 2026 combined ira limit.
roth 401k vs roth ira record 12. In record 12, keep 2026 combined IRA limit at $7,500 beside Roth 401(k) example at $10,000. At check 12, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 combined ira limit and roth 401(k) example.
roth 401k vs roth ira record 13. In record 13, keep Roth 401(k) example at $10,000 beside Roth IRA example at $3,000. At check 13, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth 401(k) example and roth ira example.
roth 401k vs roth ira record 14. In record 14, keep Roth IRA example at $3,000 beside Shared limit at None. At check 14, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth ira example and shared limit.
roth 401k vs roth ira record 15. In record 15, keep Shared limit at None beside 2026 401(k) elective limit at $24,500. At check 15, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated shared limit and 2026 401(k) elective limit.
roth 401k vs roth ira record 16. In record 16, keep 2026 401(k) elective limit at $24,500 beside 2026 combined IRA limit at $7,500. At check 16, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 401(k) elective limit and 2026 combined ira limit.
roth 401k vs roth ira record 17. In record 17, keep 2026 combined IRA limit at $7,500 beside Roth 401(k) example at $10,000. At check 17, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated 2026 combined ira limit and roth 401(k) example.
roth 401k vs roth ira record 18. In record 18, keep Roth 401(k) example at $10,000 beside Roth IRA example at $3,000. At check 18, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth 401(k) example and roth ira example.
roth 401k vs roth ira record 19. In record 19, keep Roth IRA example at $3,000 beside Shared limit at None. At check 19, the worksheet tests this pair before changing another assumption, so the observed difference remains attributable to the stated roth ira example and shared limit.
Common mistakes
Do not assume after-tax means every distribution is qualified, combine the two annual limits, or assume an employer plan offers a Roth option.
Where the calculation stops
Plan terms, income, five-year rules, withdrawals, rollovers, employer match allocation, and tax law can change the suitable choice.
roth 401k vs roth ira: source and verification
The IRS says designated Roth accounts have no income limit and its 2026 contribution pages list separate workplace-plan and IRA limits. Read the named source. This source names the transaction-specific 2026 401(k) elective limit and the conditions that qualify it.
Use the result as a dated scenario
Plan terms, income, five-year rules, withdrawals, rollovers, employer match allocation, and tax law can change the suitable choice. Recalculate the roth 401k vs roth ira case when its listed input changes.