SECURE Act 2.0: Eliminate RMDs for Roth Accounts within Employer Retirement Plans

In today’s vlog, I will be discussing the SECURE Act 2.0: eliminate Required Minimum Distributions (RMD) for Roth accounts within employer retirement plans such as 401(k) and 403(b). This is our fourth vlog about the changes within the SECURE Act 2.0 which became a law in December 2022. If you are curious about the changes regarding RMD, 529 plan rollover to Roth IRA, and expanded Roth contributions you can check them out on our website. For this vlog, I will focus on the change of “Eliminate RMDs for Roth Accounts within Employer Retirement Plans”.

Before this SECURE Act 2.0 is passed, those who have retirement plan Roth accounts such as 401(k) and 403(b) with their employer were required to take RMDs like the owners of employer retirement plan Traditional accounts do. When you reach your age for RMD, you would have to take a specific amount out of your Roth account. Now, after the SECURE Act 2.0 is passed, the RMD obligation is eliminated for those who have employer retirement plan Roth accounts. To be clear, this change does not take effect until 2024. For this year, 2023, owners of retirement plan Roth accounts are still required to take out RMD but this would be the last year. This change eliminates a huge difference between Roth IRAs and employer retirement plan Roth accounts because Roth IRA owners were not required to take RMDs during their lifetimes. This difference does not exist anymore since the SECURE Act 2.0 became a law.

If you are curious about how RMD works and how this change impacts your retirement planning, please feel free to contact us anytime.

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Adrianna Rocha

Client Relations Specialist

240-379-6929 V
240-439-6889 VP
512-379-6909 FAX
adrianna@kramerwealth.com

Adrianna Rocha joined Kramer Wealth Managers in 2021.

Adrianna is responsible for client experiences and service. As part of the customer service team, she strives to help and provide top-notch service to our clients. As part of her role, she communicates with clients through videophone, schedules client meetings, prepares and processes forms, and gathers information for our advisors.

Adrianna Rocha graduated with a Bachelor of Arts in Communication Studies from Gallaudet University in 2017. Before she joined our team, she worked in the customer service industry for nearly a decade. She excels in human-to-human relations and takes pride in not only her own accomplishments, but her clients’ as well. Adrianna enjoys chatting about her slight obsession with dogs, houseplants, essential oils, and food: especially Mexican food! She is also a proud fur-mama to her beautiful Aussie-mixed pup, Ziva.

Adrianna is not registered with Osaic Wealth.