Comments on: Roth IRA vs. Roth 401(k) – Choose the Best Plan For You

By: Tom

Tom — Sat, 06 Apr 2019 11:02:19 +0000

Good article. I do have a question, if I rollover money from a Roth 401k into a Self-directed Roth IRA, would that remove the RMDs related to the Roth 401k?

By: Jeff Rose

Jeff Rose — Mon, 28 Jan 2019 23:25:38 +0000

In reply to Ken Cheng. Hi Ken - According to my research, you can contribute the full amount to both. For example, you can make the full $18,500 Roth 401(k) contribution, but also contribute $5500 to a Roth IRA. That will give you a total of $24,000. Of course the limitation is that neither contribution will be tax-deductible. I don't know what your income situation is, but if you can afford to make a contribution that large, my guess is you'll need at least some of the 401(k) being traditional for the tax deduction. You'll really want to crunch numbers on this one.

By: Ken Cheng

Ken Cheng — Sun, 13 Jan 2019 22:35:48 +0000

If one has the opportunity to participate in both an employer’s Roth 401K and a self directed Roth IRA, do the contribution limits change (i.e. if the Roth 401K limit is $18,500 and the Roth IRA is $5500, does contributing $5500 to the Roth IRA lower the Roth 401K limit by that same amount to that I can only contribute $13,000?)

By: Jeff Rose

Jeff Rose — Tue, 12 Sep 2017 18:24:25 +0000

In reply to Jon T. Basically Jon. But it all depends on when the rollover is done. If you have already reached 70 1/2, then the RMD will need to be done for that year. But it will no longer be required in the years after the rollover has been completed.

By: Jon T

Jon T — Thu, 07 Sep 2017 03:01:26 +0000

Similar to Alan’s question. When you role a Roth 401K into a Roth IRA is the requirement to have equal withdraws across investments and contributions removed?

By: Jeff Rose

Jeff Rose — Fri, 25 Aug 2017 16:34:40 +0000

In reply to Alan S. Hi Alan - It does. It's easy to do too since there's no tax due on the rollover.

By: Alan S

Alan S — Sun, 20 Aug 2017 20:13:42 +0000

Jeff, if you rollover your Roth 401(k) to a Roth IRA, does that now exclude the funds from the RMD calculation?