Where did you see this? My understanding is you can withdrawal contributions penalty free regardless of if it's Roth employee contributions or a MBDR.I am not 100% sure on this but as it relates to a Solo 401K, you should lean towards a MBDR instead of Roth Employee Salary deferrals if you can help it. As far as I understand it, there are some different rules around 401K Roth Employee Salary Deferrals (i.e., you can't get to them until 59 1/2) vs a MBDR where you can roll to a Roth IRA and withdraw the contributions without penalty. Assuming you have plan that supports a MBDR, there aren't any tax differences on a salary deferral vs a MBDR.
Statistics: Posted by ThankYouJack — Tue Sep 10, 2024 10:00 am