I am amazed at how much misinformation is spread by the financial press. I just read an article from US News and World Report (which I believe has a fairly good reputation for its financial coverage) that says that RMDs are not required from Roth 401ks. I knew this to be false, and sure enough it's easy to do a web search and confirm this. But how many readers of the article knew this already, or would take the initiative to do their own research? I wonder who the reporter is who wrote this, and what kind of editor approved it for publication?
Reason #2 from "4 Reasons to Save in a Roth 401(k)":
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No required minimum distributions. When you reach age 70 1/2, you will need to start taking withdrawals from your traditional 401(k)s and IRAs. Even if you don't need the income immediately, you still need to take a distribution each year and pay tax on it. Roth accounts do not require withdrawals in retirement, and can also be passed on to heirs.
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This is of course true for Roth IRAs, but false for Roth 401ks.
https://finance.yahoo.com/news/4-rea...141015527.html
Here is what the IRS says about this:
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The RMD rules also apply to Roth 401(k) accounts. However, the RMD rules do not apply to Roth IRAs while the owner is alive.
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Retirement Plans FAQs regarding Required Minimum Distributions
The comments section of the article already has a comment that points out the mistake, so I'm hopeful it will be corrected shortly.
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