RMD requirements for Roth 401k


Full time employment: Posting here.
Jan 13, 2013
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)":
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.
This is of course true for Roth IRAs, but false for Roth 401ks.


Here is what the IRS says about this:
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.

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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