RMDs · 5 min read
Your Roth 401(k) No Longer Has RMDs — With One Clock Still Ticking
Since the 2024 tax year, designated Roth accounts in 401(k), 403(b), and governmental 457(b) plans have no lifetime required minimum distributions — the treatment Roth IRAs have always had (SECURE 2.0 §325). The catch that survived: each plan's five-year clock is its own, and rolling to a brand-new Roth IRA restarts the earnings-qualification clock — the plan's years do not transfer. Opening a Roth IRA with a small contribution years early defuses it. Heirs still face post-death rules, and pre-tax balances still have RMDs. Details below. This is an educational summary, not advice.
For years, the Roth 401(k) carried an asterisk its IRA sibling never had: required minimum distributions. You paid tax up front for tax-free growth, and then at RMD age the government made you take the money out anyway. That asterisk is gone. Beginning with the 2024 tax year, designated Roth accounts in 401(k), 403(b), and governmental 457(b) plans have no lifetime RMDs — the same treatment Roth IRAs have had since 1997. (SECURE 2.0 Act §325; IRS final regulations, IRB 2024-33.) One important clock, though, is still ticking.
What Changed, and for Whom
The old rule forced Roth 401(k) owners to either take RMDs they didn't need or roll the account to a Roth IRA to escape them. The SECURE 2.0 change removes lifetime RMDs from designated Roth accounts entirely:
| Account | Lifetime RMDs? |
|---|---|
| Traditional 401(k) / IRA | Yes — age 73 now; 75 for those born in 1960 or later |
| Roth 401(k) / 403(b) / 457(b) | No (since the 2024 tax year) |
| Roth IRA | No (always) |
(IRS Retirement Topics — RMDs; IRB 2024-33.)
The practical effect: Roth 401(k) dollars can now stay invested, growing tax-free, for as long as you live — no forced withdrawals, no first-RMD deadlines, no annual calculation. For anyone who was rolling to a Roth IRA purely to dodge RMDs, that reason is gone. Other reasons to roll — investment menu, fees, consolidation — still stand on their own merits.
The Clock Still Ticking: Five-Year Rules
Tax-free treatment of Roth earnings requires a qualified distribution: age 59½ plus a five-year clock. And the Roth 401(k)'s clock has a trap the change did not touch.
Each employer plan's designated Roth account runs its own five-year clock, starting with your first Roth contribution to that plan. Roll the money to a Roth IRA, and the plan's clock does not come along — the money adopts the Roth IRA's clock, measured from your first-ever Roth IRA contribution. If the receiving Roth IRA is brand new, a decade of Roth 401(k) participation effectively restarts at zero for the earnings-qualification test. (IRS, Designated Roth Account FAQs.)
The defensive move is simple and cheap: open a Roth IRA with any small contribution years before you expect to roll anything into it. The IRA clock runs from that first contribution, so a Roth IRA opened at 55 has a seasoned clock waiting when the 401(k) rolls in at 62. (Two softeners: direct rollovers from one employer's Roth account to another's can carry the earlier start date, and contribution basis in a Roth IRA is always withdrawable tax- and penalty-free — only earnings are at stake. The details live in our guide to the five-year clocks.)
The Contribution Side, for Context
The Roth 401(k)'s two structural advantages over the Roth IRA are unchanged. There is no income limit on designated Roth contributions — while Roth IRA contributions phase out at $153,000–$168,000 of income for single filers and $242,000–$252,000 for joint filers in 2026. And the contribution room is far larger: the shared elective-deferral limit is $24,500 in 2026, rising to $32,500 with the age-50 catch-up and $35,750 for those turning 60 through 63 — against $7,500/$8,600 for IRAs. (IRS Notice 2025-67.) One 2026 wrinkle: workers whose prior-year wages exceeded $150,000 must make any catch-up contributions as Roth — the super catch-up guide covers it.
What This Does Not Mean
The repeal is lifetime-only. Beneficiaries who inherit a Roth 401(k) still face post-death distribution rules — for most non-spouse heirs, the account must be emptied within ten years, though the withdrawals are generally tax-free. It also does not touch traditional 401(k) balances sitting in the same plan: pre-tax dollars still have RMDs on the standard schedule, and a “Roth 401(k)” with a large pre-tax balance alongside it still has forced withdrawals coming from that side. The change makes the Roth side of the ledger cleaner — it does not make the whole account exempt.
Frequently Asked Questions
Q: Does a Roth 401(k) have required minimum distributions?
Not anymore. Beginning with the 2024 tax year, SECURE 2.0 §325 removed lifetime RMDs from designated Roth accounts in 401(k), 403(b), and governmental 457(b) plans — matching the Roth IRA's treatment.
Q: Should I still roll my Roth 401(k) into a Roth IRA?
The RMD reason to roll is gone; fees, investment options, and consolidation remain legitimate reasons. If you may roll someday, open a Roth IRA with a small contribution now — the IRA's five-year clock runs from your first contribution, and rolling into a brand-new Roth IRA restarts the earnings-qualification clock.
Q: Do my heirs avoid RMDs too?
No — the change is lifetime-only. Most non-spouse beneficiaries must empty an inherited Roth 401(k) within ten years, though qualified distributions remain tax-free.
Q: What are the 2026 Roth 401(k) contribution limits?
$24,500 in elective deferrals (shared between pre-tax and Roth), plus an $8,000 catch-up at 50+, or $11,250 for those turning 60–63 — up to $35,750. There is no income limit on designated Roth contributions.
The decisions in this guide are what the Retirement Checkup scores — seven questions, two minutes, no email needed to see your score.
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The views and opinions expressed here are those of The Financial Sciences Company as of the publish date and are provided for informational and educational purposes only. They are not personalized investment, tax, or legal advice. The Financial Sciences Company, LLC is an investment adviser registered with the State of Texas. Registration does not imply a certain level of skill or training. Additional information is available in our Form ADV at adviserinfo.sec.gov.
General educational information, current as of 2026. Not personalized investment, tax, or legal advice — figures and rules change. For guidance specific to your situation, talk to a qualified professional.