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Why this is correct (Q18 — Roth IRA not subject to RMDs during owner’s lifetime): A key structural difference between Roth IRAs and many other retirement accounts is RMD treatment: in many common rule sets, Roth IRAs do not require the original owner to take Required Minimum Distributions during their lifetime. The rationale is that Roth contributions are already taxed, so distributions are tax-free and there’s less need to force withdrawals to collect taxes. By contrast, Traditional tax-deferred accounts and some employer Roth accounts can be subject to RMDs (Roth 401(k) accounts, for example, may be subject to RMDs unless rolled to a Roth IRA). Practically, this makes Roth IRAs useful for savers who want to let assets grow tax-free for longer, or who are planning for estate flexibility because heirs face different rules.
Practical takeaway & rollover considerations: If avoiding lifetime RMDs is important, many savers choose to roll employer Roth 401(k) balances into a Roth IRA after leaving the employer (subject to plan rules and eligibility) because Roth IRAs commonly avoid RMDs for the original owner. Check plan rules and rollover mechanics before acting. Also consider how this RMD treatment interacts with overall tax planning: fewer forced withdrawals can reduce taxable-income spikes in retirement. Keep in mind that laws and rules change—always confirm current guidance before making decisions.
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