2. No required minimum distributions in Roth 401 plans
Starting in 2024, individuals who left assets in a Roth employer plan won’t be subject to mandatory distributions during their life. However, for the beneficiary,As with any financial decision, there are pros and cons to leaving money in an employer plan versus that plan participants age 50-plus make catch-up contributions to a Roth account.² Currently, pre-tax or Roth contributions are allowed. The new rule offers an exception for workers who earned less than $145,000 the previous year for theAs currently written, this poses a planning opportunity for individuals older than 50 who change jobs mid-year as they may be eligible for pre-tax catch-up contributions for another year or two before triggering the compensation limit for the prior year.