Roth salary deferrals are called elective salary deferrals. By IRS statue, these cannot be withdrawn until 59 1/2 or you are separated from your employer. You cannot roll them to a Roth IRA until then. Whereas, MBDR, you can roll from your Roth 401K to a Roth IRA (or straight from After-Tax->Roth IRA) and access the contributions at any time. Since you're an S-Corp, you'd effectively have to terminate your business to access the salary deferrals. Depending on your plan summary document, Roth profit sharing can be accessed within 2 years but generally you'd just do a MBDR assuming you have a plan with that option.vtjon wrote: ↑Wed Dec 11, 2024 9:32 pm
MBDR is preferred over Roth salary deferrals because of the withdrawal rules
Can you please explain how the withdrawal rules differ between MBDR and Roth salary deferrals?
Statistics: Posted by vtjon — Thu Dec 12, 2024 8:24 am — Replies 5 — Views 324
