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posted Jun 4, 2019 2:01:22 PM

Is a Designated Roth a traditional IRA or a Roth IRA?

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1 Best answer
Level 6
Jun 4, 2019 2:01:24 PM

No, not exactly.  There is a subtle distinction between a "designated Roth account" and a "Roth IRA account."  A designated Roth account is one associated with a 401(k), 403(b), or 457(b) plan.  There are both advantages and disadvantages of a designated Roth account compared to a normal Roth IRA account.  A good description from the IRS website is at:
   https://www.irs.gov/retirement-plans/designated-roth-accounts-contributing-to-a-designated-roth-acco...

1 Replies
Level 6
Jun 4, 2019 2:01:24 PM

No, not exactly.  There is a subtle distinction between a "designated Roth account" and a "Roth IRA account."  A designated Roth account is one associated with a 401(k), 403(b), or 457(b) plan.  There are both advantages and disadvantages of a designated Roth account compared to a normal Roth IRA account.  A good description from the IRS website is at:
   https://www.irs.gov/retirement-plans/designated-roth-accounts-contributing-to-a-designated-roth-acco...