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Posted

I understand that new rules starting in 2024 disregard Roth balances when calculating RMDs.  I also understand that an RMD is not required from a 401(k) if all you have in the account is Roth money.  However, I am not aware of any rule prohibiting you from taking your RMD from the Roth portion of your 401(k) if you have pre-tax and Roth funds.  Two recordkeepers (so far) will not allow you to take an RMD from Roth.  Am I wrong or are the recordkeepers wrong?

This excerpt from the IRS FAQs seems to agree with me.

Q11. How are RMDs taxed?

The account owner is taxed at their income tax rate on the amount of the withdrawn RMD. However, to the extent the RMD is a return of basis or is a qualified distribution from a Roth IRA, it is tax free.

Posted

I'm pretty sure, but don't have time to check right now, that the proposed regulations specified that if the participant is still alive, distributions from the Roth portion do not satisfy RMD requirements.

Posted

Belgarath, I think you're right....I'm finding more on it....looks like it was clarified that distributions from the Roth portion do not satisfy the RMD after 12/31/23.  Thanks for responding.

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