USA Accounts
Some good websites to help you on your financial journey.
Last updated: Sat 22-Aug-2026 afternoon
| Traditional IRA (Individual Retirement Account) | Roth IRA (Individual Retirement Account) | Traditional 401k | Roth 401k | |
|---|---|---|---|---|
| Description | Retirement. Wait until 59.5 years old to withdraw. Original. | Retirement. Wait until 59.5 years old to withdraw. As of 2023, this is not available if you are single and make over US$153k or married and make over US$228k combined. | Retirement just like the Traditional IRA but it is sponsored by your employer. Hence you get an employer match. Wait until 59.5 years old to withdraw. | Retirement just like the Roth IRA but it is sponsored by your employer. Hence you get an employer match. Wait until 59.5 years old to withdraw. |
| Employer Match | No | No | Yes | No |
| Income Qualification Limits | No | Yes | ??? - don’t think so | No |
| Taxes on Contribution | Reduces your taxable income by the amount you contribute. | No savings on taxes when money is contributed. | Reduces your taxable income by the amount you contribute. | No savings on taxes when money is contributed. |
| Taxes on Growth | Tax free | Tax free | Tax free | Tax free |
| Taxes on Withdrawals | Taxable | Tax free | Taxable | Tax free |
| Maximum Annual Contribution | 2023: $6,500 Which is a total of Traditional + Roth. | 2023: $6,500 Which is a total of Traditional + Roth. | 2023: US$22,500 per year per employee. Catch-up if 50 years old or older is US$7,500. Combined with employer can be US$66k per year (or US$73,500 if 50 or older). | 2023: US$22,500 per year per employee. Catch-up if 50 years old or older is US$7,500. Combined with employer can be US$66k per year (or US$73,500 if 50 or older). |
| Required Minimum Distributions | Not required | Not required | At 72 years old you are required to withdraw a minimum amount based on life expectancy and account balance. | At 72 years old you are required to withdraw a minimum amount based on life expectancy and account balance. |
| Investment Options | Typically more options than a 401k | Typically more options than a 401k | Typically less investment options as compared to an IRA | Typically less investment options as compared to an IRA |
Backdoor Roth IRA
- Money -to- Traditional IRA (non-tax-deductible) -to- Roth IRA
- File Form 8606 to let the IRS know that you are not reducing your taxes when contributing to your Traditional IRA
- Used only when your income is above the income limits, otherwise can just contribute to your Roth IRA
- Look up prorata trigger as on 31-Dec of the year that you do the conversion you cannot have cash in one of the other IRA (Traditional, SEP, Simple) when you do the backdoor
References
- https://www.youtube.com/watch?v=2iUwj4A91Yc
- https://www.forbes.com/advisor/retirement/401k-contribution-limits
- https://www.youtube.com/results?search_query=rose+han+tax+loopholes
- https://www.youtube.com/watch?v=vF069x27pGY
- https://www.youtube.com/watch?v=Ovua8cC4LqY
- https://www.youtube.com/watch?v=tz0Srw_jJh8
Appendix
Version History
| Date | Notes | |
|---|---|---|
| 01 | Sat 22-Aug-2026 | Initial version |