Q. I’m considering a Roth 401(k) for my company. Do employees have to take RMDs? W.B.K., San Jose, Calif.
A. Yes. Generally, you must take “required minimum distributions” (RMDs) from company retirement plans and IRAs, beginning by April 1 of the year after the year in which you turn age 70½. (An exception exists for company retirement plans if you’re still working and you’re not the business owner.)
The RMD rules apply to all employer sponsored retirement plans, including 401(k) plans with a Roth IRA feature. But, unlike the rules for traditional IRAs, Roth IRA participants don’t have to take lifetime RMDs.
Tip: The rules for RMDs do apply to heirs of Roth IRAs.