Designated Roth Accounts
These pages are part of our free online Guide to Roth Retirement Accounts. This section deals with designated Roth accounts, which are Roth accounts in 401k and similar plans, including 403b and 457b plans as well as the federal government’s Thrift Savings Plan.
Our book: Go Roth! provides a complete, authoritative, plain language explanation of rules and strategies for all types of Roth accounts.
Understanding designated Roth accounts
Designated Roth Account Overview
Tax-free retirement savings come to the 401k/403b world.
Roth Account Compared with Traditional Account
How one type of account differs from the other.
Designated Roth Account Compared with Roth IRA
Designated Roth accounts offer some significant advantages over the Roth IRA.
A Roth Account Means More Wealth
A simple way to choose the Roth account.
Contributing to a Designated Roth Account
Let’s walk through an example.
Rules for designated Roth accounts
Who’s Eligible for a Designated Roth Account?
There are just two requirements.
Rollovers from Designated Roth Accounts
When you’re eligible to take money from your designated Roth account, you can roll it to a Roth IRA or to a Roth account with another employer.
Contributions Over the Limit
How to handle a situation where you go over the limit for contributions to a Roth 401k or similar account.
Distributions from Designated Roth Accounts
They’re similar to Roth IRA distributions, but with some important differences.
Five-Year Requirement for Designated Roth Accounts
This is one of the tests to take qualified distributions from a designated Roth account.