Roth Solo 401(k)

Solo 401(k) sub-account funded with after-tax employee deferrals (and now employer contributions per SECURE 2.0).

Definition

A Roth Solo 401(k) accepts after-tax employee deferrals (post-2024 also after-tax employer matching/profit-sharing per SECURE 2.0 Act). Qualified withdrawals after age 59½ and 5-year holding period are tax-free. Roth and traditional sub-account assets are aggregated for the $250,000 Form 5500-EZ threshold.

Related terms

Solo 401(k)401(k) retirement plan covering only a self-employed business owner and optionally their spouse.SECURE 2.0 Act2022 federal law making 90+ changes to retirement plan rules including RMD age, Roth Solo 401(k), and catch-up rules.