RMD for the Solo 401k (both traditional and Roth)

Submitted by Geraldine Walter on Sat, 2021-03-06 14:07

Hi Ed,

I have a Solo 401k at a brokerage company. The Solo 401k contains two parts, a traditional part and a Roth part. For my first RMD the brokerage company computed ONE number for me. Do I:
1. Take the whole RMD from the traditional part of the Solo 401k?
2. Take the whole RMD from the Roth part of the Solo 401k?
3. Take a proportional RMD from both the traditional 401k and Roth 401k?

Thanks, Geraldine



Submitted by Alan - IRA critic on Sat, 2021-03-06 15:57

4) Divide it up however you wish. IRS rules permit this, but some plans do not support it. Since the brokerage only supplied one figure with no specific instructions, that is a good indication that you can split it up as you please, or by whether you want your taxable income to rise. To stop having to take RMDs on the Roth portion, even if you take the indicated RMD from the pre tax account, roll the Roth portion near the end of every year to your Roth IRA.

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