401(k) RMDs
Hi Terry,
I have a 401(k) from my previous employer (I am now retired) that has a Roth portion in addition to traditional 401(k) portion. I’ll have to start taking RMD from this 401(k) next year (I’ll turn 72 in 2022). My understanding is that I’ll have to take RMD on the Roth portion as well as the non-Roth portion which I would prefer not to do. I know one option is to roll the entire 401(k) into an IRA this year to avoid the requirement to take my RMD on the Roth portion. What I would like to do is transfer only the Roth portion of this 401(k) to an IRA because I like the 401(k) account and would like to maintain it. Can I do that? Are there any other ways to accomplish what I am trying to do?
Thank you.
Terry Says
Wow, that’s a strange question since I would assume the plan custodian could handle that easily. I suggest you contact either Fidelity or Vanguard and speak to the IRA rollover department. They can contact your plan custodian and handle the Roth rollover.
But I also suggest that you SEPARATELY roll over the traditional portion — after doing the Roth. You’ll need to start taking RMDs,and they are better equipped to calculate the amounts and set up a monthly payout if you choose. And at this stage of life they have a wider variety of investment choices than a 40l(k) plan which is basically built to create growth opportunities for younger workers.
