One exception is if you continue working after age 72 for the company that sponsors the plan and you don t own more than5%of the company.
You can avoid taking the minimum distributions entirely by rolling a Roth 401(k) into a personal Roth IRA, which is not subject to RMD rules.
For people relying on funds from their plans for living expenses, the rule change probably went unnoticed. It s a different story for retirees who didn t need the funds. It allowed the money to stay there and continue growing tax-free for a longer period, said Ed Zollars, a CPA with accounting firm Thomas Zollars & Lynch. I think most people who could afford to skipped [the distribution] last year.
BY THE EDITORIAL PAGE STAFF OF T HE FREE LANCE-STAR
LAST YEAR, the Rappahannock United Way helped more than 600 local low-income households pay their mortgages, rent and transportation bills so they could continue to work (if they still had jobs) and remain in their homes during the pandemic. Many Asset Limited, Income Constrained Employed (ALICE) workers are just one paycheck away from catastrophe.
Last month, the Virginia House of Delegates passed a bill patroned by Del. Luke Torian, D-Dumfries, that would require employers with five or more employees who do not currently offer a qualified retirement plan to set up automatic payroll deductions to fund Roth individual retirement accounts (IRA) for them. AARP estimates that 1.8 million Virginians do not have a retirement plan at work.