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Several of our clients have asked whether Roth contributions to a Roth 401(k) plan are subject to the required minimum distribution rules. The IRS has just released new regulations that surprisingly state that these contributions are indeed subject to the minimum distribution rules. As you may know, individual Roth IRAs (i.e., those that are not part of a Roth 401(k) plan) are not subject to the minimum distribution rules while the Roth IRA owner is alive. However, in the case of a Roth 401(k) plan, the IRS says that designated Roth accounts are subject to the minimum distribution rules in the same manner as pre-tax 401(k) elective contributions. For further guidance, please contact your tax advisor. Or, call our firm:
Disclaimer: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any penalties that may be imposed, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. |
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