Do Roth 401(k) Accounts Still Require RMDs?
Roth accounts are often described as the retirement savings option that skips required withdrawals entirely, but that hasn’t always been true across every type of Roth account. The rules have shifted, and it’s worth understanding where things stand now.
The short answer
A Roth 401(k) is no longer subject to required minimum distributions during the original account holder’s lifetime, bringing it in line with how a Roth IRA has generally been treated. This is a change from how Roth workplace accounts used to work, when they were subject to RMDs even though the money inside them was already after-tax.
Why this used to be confusing
For years, the two main types of Roth accounts were treated differently for RMD purposes. A Roth IRA never required lifetime distributions from the original owner, since the account holds after-tax money and the government has less of an ongoing tax interest in forcing withdrawals. A Roth 401(k), even though it also holds after-tax contributions, was technically still a workplace plan and fell under workplace-plan RMD rules, which did require distributions. That inconsistency caught a lot of people off guard, since the “Roth” label led many to assume the same lifetime-RMD exemption applied everywhere.
- Roth IRAs have generally skipped lifetime RMDs. The original account holder hasn’t been required to take distributions during their own lifetime.
- Roth 401(k)s used to be the exception. Despite holding after-tax money, they were historically still subject to the RMD rules that apply to workplace plans.
- That gap has now closed. Roth 401(k) accounts are no longer required to distribute money during the original holder’s lifetime, aligning the two account types.
What this means for someone with a Roth 401(k)
Practically, this means someone who has kept an old 401(k) in its Roth form no longer needs to plan around a required withdrawal from that account while they’re alive, the same way they wouldn’t for a Roth IRA. This can simplify year-end planning for people holding both a traditional and a Roth workplace account, since only the traditional portion carries an ongoing distribution requirement.
Where the rules still differ after death
This change applies to the original account holder’s lifetime. Beneficiaries who inherit a Roth 401(k) still generally have to follow distribution rules for inherited accounts, which work differently than lifetime RMDs and depend on factors like the beneficiary’s relationship to the original owner. Anyone inheriting a Roth account, workplace or IRA, should treat that as a separate question from whether the original owner had a lifetime requirement.
A practical habit
Because retirement account rules change over time and are set by the government, it’s worth periodically checking how a specific account is currently classified rather than assuming decades-old assumptions still hold. Someone holding an older Roth 401(k) that predates this change might still find outdated information suggesting RMDs apply, so confirming current treatment with the plan administrator is a reasonable habit rather than relying on memory of how the rule used to work.