CRD and 401k Roth balance
If someone has a 401k worth 400k. $100k is aftertax (Roth 401k). if they qualify for a CRD and request a $100k distribution, how is is divided? or does the client get to specify which bucket they want to pull from?
If someone has a 401k worth 400k. $100k is aftertax (Roth 401k). if they qualify for a CRD and request a $100k distribution, how is is divided? or does the client get to specify which bucket they want to pull from?
Permalink Submitted by Alan - IRA critic on Wed, 2020-08-19 21:41
The plan determines what the CRD distributon options are, or if CRDs are offered at all. Probably most plans that offer CRDs will allow you to specify the source of the distribution which will allow you to control the tax bill.