Thread: Side Hustle
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Old 05-21-2018, 06:04 AM
  #131  
mispoken
Gets Weekends Off
 
Joined APC: Feb 2011
Posts: 760
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This is somewhat correct; this is from the IRS website regarding Roth 401k’s, but with a caveat; so if you’re kickin the IRS doesn’t make you take RMDs, but whoever you leave it to will.

“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.”

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-required-minimum-distributions#2

This same rule applies to a Roth IRA.

https://www.rothira.com/roth-ira-required-minimum-distribution-rmd

Like some others, I focus my funds on Roth accounts, to me it is “tax insurance”. I’m betting on the fact that taxes go up over time, and I don’t want the government to dictatate withdrawals and move me into higher tax brackets. I think the distributons from the company contribution will provide a decent balance Of taking the tax relieve now and will be subject to government imposed RMDs. A lot do argue that it only makes sense to take the tax break now, the whole “bird in the Hand” thing. It’s a valid argument.

My side hustle; options. Sitting on my butt and letting volitility produce additional income.
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