RMD from PS + designated ROTH account

[Guest Dave Peckham]

Client has prior (i.e. 12/31/13) account balance of $300,000 in profit sharing account, and $40,000 in designated ROTH account. He is age 73 in 2014, so the uniform lifetime divisor is 24.7.

So, to calculate the 2014 RMD, $340,000/24.7 = $13,765.18, because the designated ROTH account must be part of the prior account balance for calculating RMDs.

My question is: must the entire $13,765.18 be withdrawn from the profit sharing account, or can I figure a pro-rata portion from both the profit sharing and the designated ROTH account, or is the client free to withdraw $13,765.18 from either or both accounts in any ratio he chooses?

[Tom Poje]

see page 2 Roth 401k of the following article

http://www.strategicpensionservice.com/images/March_April_2013.pdf

(or at least that would be how I understand the rules as well)

[Guest Dave Peckham]

Thanks, Tom. So my client has complete flexibility to withdraw ROTH or non-ROTH money as he chooses. Amazing. Other than this newsletter, I wonder if there is any "official" guidance?

[QDROphile]

Does it help to know that a Roth account is treated as a separate contract under section 72? T.D. 9324.