Roth 457(b), 401(k) and 403(b) accounts are subject to tax-free Required Minimum Distributions (RMDs) starting at age 72. While these RMDs are tax-free, the dividends, interest and capital gains generated by the re-investment of these distributions are subject to tax.

With that said, most people starting at age 72 don't relish the responsibility of, first, taking their annual RMD and then re-investing it. This is why I recommend the following: Firstly, everyone should have a NYCE Roth IRA even though you may have no intention to contribute to it. Secondly, upon your retirement, roll your Roth 457(b), your Roth 401(k) and your Roth 403(b) accounts into your NYCE Roth IRA. Why? NYCE Roth IRA owners are not subject to RMDs starting at age 72.

Mr. Frank is a fee-only Retirement Financial Planner and a retired city high school Teacher of Accounting. He can be reached by phone at (732) 536-9472, or via email at

We depend on the support of readers like you to help keep our publication strong and independent. Join us.


(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.