<P> Under a Roth IRA , first enacted in 1998 , individuals , whether employees or self - employed , voluntarily contribute post-tax funds to an individual retirement arrangement ( IRA ) . In contrast to the 401 ( k ) plan , the Roth plan requires post-tax contributions , but allows for tax free growth and distribution , provided the contributions have been invested for at least 5 years and the account owner has reached age 591⁄2 . Roth IRA contribution limits are significantly lower than 401 ( k ) contribution limits . For tax - years 2016 and 2017 , individuals may contribute no more than $5,500 per year to a Roth IRA if under age 50 , and $6,500 if age 50 or older . Additionally , Roth IRA contribution limits are reduced for taxpayers with a Modified Adjusted Gross Income ( modified AGI ) greater than $117,000 ( $184,000 for married filing jointly ) , phasing out entirely for individuals with a modified AGI of $132,000 ( $194,000 for married filing jointly ) , for 2016 . See 401 ( k ) versus IRA matrix that compares various types of IRAs with various types of 401 ( k ) s . </P>
<P> Under a Roth IRA , first enacted in 1998 , individuals , whether employees or self - employed , voluntarily contribute post-tax funds to an individual retirement arrangement ( IRA ) . In contrast to the 401 ( k ) plan , the Roth plan requires post-tax contributions , but allows for tax free growth and distribution , provided the contributions have been invested for at least 5 years and the account owner has reached age 591⁄2 . Roth IRA contribution limits are significantly lower than 401 ( k ) contribution limits . For tax - years 2016 and 2017 , individuals may contribute no more than $5,500 per year to a Roth IRA if under age 50 , and $6,500 if age 50 or older . Additionally , Roth IRA contribution limits are reduced for taxpayers with a Modified Adjusted Gross Income ( modified AGI ) greater than $117,000 ( $184,000 for married filing jointly ) , phasing out entirely for individuals with a modified AGI of $132,000 ( $194,000 for married filing jointly ) , for 2016 . See 401 ( k ) versus IRA matrix that compares various types of IRAs with various types of 401 ( k ) s . </P>
what is the max contribution for roth 401k
what is the max contribution for roth 401k
$5,500 per year
$5,500 per year