Do Traditional & Roth 401k Have The Same Annual Contribution Limit?

All 401 k’s, a company plan, private plan, Roth or traditional all have to follow the 401 k rules regarding the contribution levels. A person can have a personal self-directed 401 k and also participate in a company plan. However the total contributions to both cannot exceed the IRS guidelines. This would include partial Roth contributions combined with partial traditional contributions. Matching funds can be different from plan to plan. A company plan will normally match a certain portion of the employee’s personal deferral. However a self directed 401 k plan will allow for a much higher match if certain rules are followed.

If an individual, LLC or corp sponsors a self-directed 401 k plan a tax professional will determine the contribution level. There are different contribution levels depending upon the plans sponsor.

The plans we create at  sdretirementplans.com offer our clients the opportunity to max their contributions and determine whether a Roth or Traditional contribution or a combination of both is best.