IRS Confirms: Roth 401(k)s No Longer Subject to Lifetime RMDs

Roth IRAs have never been subject to minimum distribution requirements. That means when a Roth IRA is inherited, the beneficiary never has to worry about annual RMDs--because the original owner, by definition, had no required beginning date--so couldn't have died after that date. Prior to the SECURE Act, however, owners of Roth 401(k)s and 403(b) accounts were required to take RMDs. Starting in 2024, RMDs from Roth 401(k)s are no longer required, putting employer-sponsored Roth accounts on a more equal footing with individual Roth accounts. While Roth distributions are not taxable on distribution, the new rule gives beneficiaries of inherited accounts freedom to empty the account as they choose within the ten-year distribution window. It also gives living taxpayers the option of allowing the funds to grow tax-deferred indefinitely. For more information on the rules governing Roth 401(k)s, visit Tax Facts Online. Read More: Link to Q3779. Note: Q is updated.