Originally Posted by
O2pilot
How is Roth different from regular post-tax? They are both post tax aren’t they? What’s the benefit of converting regular post-tax contributions to Roth post tax? I’m assuming no tax liability since they are already post tax earnings.
I know just enough to do what I do for my goals, but I believe the difference is Roth 401k vs Roth IRA. The PRAP post tax contributions are still in a tax advantaged 401k account, with gains tax deferred, therefore RMD at 70 1/2. Moving them out of the tax advantaged status into an IRA removes the RMD requirement.
https://www.investopedia.com/articles/personal-finance/063015/roth-401k-vs-roth-ira-one-better.asp