RMDs from Roth Accountss

Participant has $100,000 total, $50,000 Roth and $50,000 pre-tax.  Their RMD is $5,000 based solely on their Non-Roth Account (made up number, don't try and recalculate!).

Can they take the $5,000 distribution from their ROTH account to avoid the taxation?

7 minutes ago, austin3515 said:

Participant has $100,000 total, $50,000 Roth and $50,000 pre-tax.  Their RMD is $5,000 based solely on their Non-Roth Account (made up number, don't try and recalculate!).

Can they take the $5,000 distribution from their ROTH account to avoid the taxation?

No

yeah i came to the same conclusion.

(9) Required distributions.—

(A) In general.—A trust shall not constitute a qualified trust under this subsection unless the plan provides that the entire interest of each employee—

(i) will be distributed to such employee not later than the required beginning date, or

(ii) will be distributed, beginning not later than the required beginning date, in accordance with regulations, over the life of such employee or over the lives of such employee and a designated beneficiary (or over a period not extending beyond the life expectancy of such employee or the life expectancy of such employee and a designated beneficiary).

And then 402A as amended by S2.0 basically says that 401a9 is implemented without regard at all to the Roth accounts.  So any distriubtions from Roth are not from the employees interst in the Plan for purposes of 401a9.

Interesting question but I agree with you.

The proposed 401(a)(9) regulations address the issue (as pointed out in prior responses, the answer is no).  https://public-inspection.federalregister.gov/2024-14543.pdf. 

From the preamble (underline added by me): Under proposed §1.401(a)(9)-5(g)(2)(iii), a distribution from a designated Roth account made in a calendar year for which the employee is required to take a minimum distribution under the plan would not count towards satisfying that requirement. Consistent with this rule, the proposed regulations would provide that such a distribution is not treated as a required minimum distribution for purposes of §1.402(c)-2(f). Thus, the distribution could be rolled over to a Roth IRA if it otherwise meets the requirements to be an eligible rollover distribution.