Roth 401(k) vs. Roth IRA: Contribution Limit Comparison

The Roth contribution limits depend on your age, income, the type of account you’re using, and the year. To explain how this works, here are the 2023 Roth IRA and Roth 401(k) contribution limits.

Roth 401(k) contribution limit

If you’re wondering, “How much can I contribute to a Roth 401(k)?” the answer depends on your age. If you are younger than 50, you can save up to $22,500 from your work income into a Roth 401(k).¹ You must ask your employer to withhold the amount you want to save from your paycheck.

The Roth 401(k) contribution limit does not include employer-matching contributions. If your job gives you a 401(k) match, this is on top of whatever you save. For example, if your job matches your contributions up to 4% of your salary and you earn $100,000, that’s $4,000 if you get the entire match. You could get that $4,000 from your employer and save up to another $22,500 from your earnings.

The 401(k) contribution limit applies to both money you save in a Roth 401(k) and a traditional 401(k). Whatever you put in a traditional 401(k) reduces how much you can save for a Roth 401(k) that year. For example, if you put $10,000 in a traditional 401(k), you will only have the remaining $12,500 for your Roth 401(k) contribution limit.

Roth 401(k) catchup contributions

If you are 50 or older, the IRS allows you to save more per year in a 401(k) for catchup contributions. This lets you maximize savings in the last stretch before retirement. In 2023, the catchup contribution for a Roth 401(k) is $7,500.¹ Altogether, you can save $30,000 in a Roth 401(k) if you combine the full contribution limit plus the catchup.

Roth IRA contribution limit

A Roth IRA also limits how much you can save per year. The limits are much lower than a workplace 401(k) plan. The maximum contribution to a Roth IRA also depends on your age. In 2023, you can save up to $6,500 in a Roth IRA if you are younger than 50.¹

Once again, this is a joint contribution limit for both a Roth IRA and a traditional IRA. Any money you add to a traditional IRA in a year reduces the limit for how much you could save in a Roth IRA. If you save $3,000 in a traditional IRA, you only have $3,500 left for a Roth IRA.

Roth IRA catchup contributions

If you are 50 or older, you can save more per year in a Roth IRA thanks to catchup contributions. In 2023, you can add an extra $1,000 to your Roth IRA on top of the regular contribution limit.¹ In 2023, you could save up to $7,500 max in a Roth IRA if you are 50 or older.