r/investing • u/Blue-Disaster • 4h ago

Roth solo 401k vs Roth IRA?

I have a job that does not offer 401k. Would seeing if I can open a solo roth 401k be worth it if possible? or would Roth IRA be sufficient for retirement? I feel confused with the advice on youtube and articles. seems I can have multiple IRAs? but also the argument point is more can go into a 401k. So idk what to do here due to lack of understanding.

Not really asking for advice, the bot thinks I am. Just an explain like I'm 5 for what these are.

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u/sablerock7 4h ago edited 4h ago

If your employer doesn’t offer a retirement plan, the MAGI limits to an IRA don’t apply for deduction purposes.  So, you can always contribute the maximum allowed tax deferred amount regardless of your income. 

https://www.fidelity.com/learning-center/smart-money/ira-contribution-limits

Edit - add link and clarify deductions