Eric thanks for the continued great information! Planning to retire this year (65) and have an employer Roth 401K. Due to income I've not been able to invest in a standard Roth. So looks like I'll need to roll this over this year so I can have access to this by the time I reach my early 70's!
I think this video is out of date. Assuming I have it right, the IRS has determined that annual withdrawals (RMDs) are required under the 10 year rule. Is that not correct? If it is then anyone watching it should be aware that not taking RMDs will cause problems under the 10 year rule. BTW Eric, I really like your videos, great stuff.
Kitces webinar last week is saying proposed IRS rules are clarify when there is an rmd or not with 10 year rule. It depends on if retirement owen died before their rmd date or not. Complicated stuff
Eric, great video. Because words matter (and the government obfuscates words) . . . consider further clarity. The government does not use the words ROTH 401k for it's Thrift Savings Plan (TSP) Roth. Thus, there is misunderstanding among millions in the military and civil service that they do not have RMDs on their TSP Roth account. Unfortunately, those folks will figure it out after age 72, after a 50% tax penalty, and after the correction zone where they can do anything (forward looking tax planning) about it. If I'm wrong shout me down. Best.
Great, great point John. I should have made this distinction but thank you for clarifying. A Roth TSP has an RMD in the same way a Roth 401k does. As you mentioned, this can be confusing as a Roth TSP is not designated (or called) a Roth 401k. Thank you for this add-on!
@@SafeguardWealthManagement It would probably be better to refer to a Roth subaccount in an employer-sponsored plan, because the rules apply to any employer plans with Roth subaccounts, including 401(k), 403(b) , 457(b) and TSP.
If the children inherited an Roth IRA from the parents after 2020, can the children rollover the RMD of parents' Roth IRA to the children's Roth IRA? Thanks!
if you are designated beneficiary (brother) that is less then 10 year younger them the person that pass away can you take RMD over your life time for ROTH? also if the roth account was made 3 year ago is the gains still tax free?
A brother less than 10 years younger would be an Eligible Designated Beneficiary and yes, is subject to the stretch (lifetime) rules. The Roth gains would not be tax-free until the 5 years (from the original owner) has passed
I have a Roth 401k. Opened a Roth IRA at age 55. Can I roll the Roth 401k into the Roth IRA at age 60 and have immediate access or do I need to wait 5 years? I don't think I will need access to those funds but would like to know the answer to my question just in case.
Sounded like you have to wait 5 years. I’m in the same boat. Incremental transfers over 10 years is my plan. That leaves clear access to 50% of Roth funds over the long haul.
@@markherron6139 I did not get a rock solid answer to this. My assumption is since it is Roth to Roth there would be no waiting period. But I think we both know what happens when you assume...
