<prompt> Human: Ok Im looking at opening a Roth IRA with Vanguard and Im seeing that the admiral shares expense ratio for their 500 index fund is .05. The current expense ratio for the same type index with my company 401k John Hancock is .78. My company doesnt match, and the only benefit Im getting is that it will reduce my taxable income I make around 100k and put away 17. Since I get no match, Id love to just ditch John Hancock and put my 17 in that Vanguard fund. But obviously There are limits. Can someone Explain to me whats behind the thinking of setting lower limits with a personal 401K vs a company 401K? It seems to me that if you were working for yourself you wouldnt get a benefit of a company match, so you would need to be able to put in more. Assistant: Well, note that solo 401ks actually have the same limits as normal 401ks. So if you work for yourself, and have a business set up needed before you can sponsor yourself with a 401k, then its all the same. Solo 401k-ers also get to match their own contributions and enjoy the same tax benefits on the company side, too.As to why IRAs have different limits than 401ks, thats a good question. Im sure theres no great reason, aside from the fact they are two different pieces of IRS code the 401k was never meant to be a retirement savings vehicle, at least not for most people, enacted at different times, and they each have their own special features.If it helps, the IRS does limit your pre-tax contributions if you are covered by a 401k plan at work based on your salary. So it evens it up a little bit - 401k earners who make 70k cant also take advantage of the IRA deductions others use.Human: Wait a minute... So if I open a Traditional solo 401K with vanguard, I have the same contribution limit 17,500 as my employer 401K? Note I do not work for myself, I work for a company.  <response>: No, thats the catch - you cant open a Solo 401k unless you work for yourself. Since you mentioned people working for themselves, I wanted to point out the IRS isnt being completely unfair, and people who work for themselves do have the same options as employees working for others.In your case, solo 401ks dont apply, and you are stuck with the lower IRA limits. 