The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: ROTH 401K Now Offered||Date: 11/3/2013 11:29 AM|
|Author: aj485||Number: 73682 of 78165|
Another difference is that your 401k will be subject to mandatory withdrawals - about 3 pct per year I believe - when you become 70.5 years old. The Roth does not have mandatory withdrawals. These have tax consequences - the non-Roth withdrawals are taxed at that time.
Sorry - you need to be more specific than just 'Roth' and '401(k)' when talking about RMDs (Required Minimum Distributions) at 70 1/2, because Roth 401(k)s DO require RMDs.
Roth IRA - no RMD required, no taxes due on withdrawal (assuming all other rules met)
Roth 401(k) - RMD required at 70 1/2, no taxes due on withdrawal (assuming all other rules met)
Traditional IRA - RMD required at 70 1/2, taxed at your marginal rate
Traditional 401(k) - RMD required at 70 1/2, taxed at your marginal rate