Roth 403(b) to Roth IRA rollover

[steelyman]

I got around to rolling over a Roth 403(b) account to a Roth IRA today.

The motivation was that I learned that a 403(b) is subject to RMDs (even if Roth). This was Fidelity to Fidelity, transfer in kind, so why not?

[ADDED] I don’t know if Roth 401(k)s are treated similarly but it would be worth checking out if that applies to you.

 

[Sunset]

Yes Roths are subject to RMD (AFAIK).

So I'll be doing the same when I know for sure I'm done contributing.

 

[Dash man]

Yes Roths are subject to RMD (AFAIK).

So I'll be doing the same when I know for sure I'm done contributing.

I just searched the IRS site and didn’t see anything requiring a Roth account of any kind requiring an RMD. It just refers to traditional IRAs, 401k, 403b, and other types of tax deferred accounts.
I suppose the plan administrator could require it to get the accounts off their books, but it really doesn’t make sense.

 

[WWDog]

I believe that Roths when inherited require minimum distributions after a certain time unless it is a spouse (I believe 10 years). But the originator does not have to take distributions.

 

[CRLLS]

Dash man, From the IRS website,

You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½. However, changes were made by the Setting Every Community Up for Retirement Enhancement (SECURE) Act which was part of the Further Consolidated Appropriations Act, 2020,P.L. 116-94, signed by the President on December 20, 2019. Due to changes made by the SECURE Act, if your 70th birthday is July 1, 2019 or later, you do not have to take withdrawals until you reach age 72. Roth IRAs do not require withdrawals until after the death of the owner.

and

Do these rules apply to my retirement plan?
The minimum distribution rules discussed below apply to:

traditional IRAs
SEP IRAs
SIMPLE IRAs
401(k) plans
403(b) plans
457(b) plans
profit sharing plans
other defined contribution plans

It seems that only Roth IRA's have no RMDs.

 

[steelyman]

This may be the article that alerted me to RMDs for Roth 403(b) accounts. However, it’s dated 2016 so things could have changed.

Regardless, I did the rollover from Roth 403(b) to Roth IRA so it’s not a concern for my retirement portfolio.

Designated Roth accounts, or DRAs for short, are Roth accounts held inside an employer-sponsored retirement plan, like a Roth 401(k) or Roth 403(b). It sounds like a bunch of alphabet soup, but DRAs are subject to RMDs. Although Roth IRAs have no RMDs during your lifetime, designated Roth accounts are subject to RMDs.

https://www.irahelp.com/slottreport/these-roth-accounts-have-rmds