How can I avoid Required Minimum Deductions (RMDs)?

I just learned that with a Roth 401(k), one pays no tax on the growth but is required to begin making RMDs at 70.5 years old. Should you have two separate IRAs so the balances do not mix? I want to avoid RMDs for both my Roth IRA and a Roth 401(k) accounts.

401(k), IRAs, Taxes, Tax Deductions / Credits
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3 weeks ago

Bishop, Scott

Houston, TX
83% of people found this answer helpful

The only time you owe RMDs on your 401(k) after you are age 70.5 is after you stop working. If you do not own more than 5% of the compnay, you never have to take RMD’s from your 401(k), whether Roth or Traditional.

You do NOT have to take RMDs out of Roth IRAs (ever) during your lifetime.

Therefore, if you have retired and/or left your employer, you can roll your Roth 401(k) into your Roth IRA and then you will NOT need to take any RMDs...after Retirement, Roth 401(k)’s require RMDs, but not Roth IRAs.

Hope this helps!

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