Roth 401k RMD

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CrypTech
Posts: 1
Joined: Fri Sep 03, 2021 2:33 am

Roth 401k RMD

Post by CrypTech »

There appears to be no way to account for Roth 401k scenarios. They are a hybrid in that they do not require tax payments, but still endure Required Minimum Distributions. This should be tracked independently of the "Tax-Free" field, as many will have both Roth IRA and Roth 401k accounts.
jimr
Posts: 821
Joined: Thu Feb 28, 2008 6:48 pm

Re: Roth 401k RMD

Post by jimr »

As I understand it, most people roll their Roth 401k into a Roth IRA to avoid RMDs.

If that's not viable in your case, you may be able to fudge it by setting the income tax rate to zero and handling taxes on other income by manually computing and deducting taxes prior to entering the cash flow amount in additional income.

I realize this isn't ideal, but the planner's tax model is pretty simple and just isn't intended to handle the exact specifics of every tax situation in every country. The idea is for the planner model to cover the big stuff and then provide input flexibility so you can manually tune things to get as close as possible to reality.
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