A new 2025 law means you’re no longer forced to withdraw money from your Roth 401(k) at 73. Learn what this freedom means for your retirement and your next steps.

New 2025 rules mean the money in this account now has more freedom to grow. No more forced withdrawals.

Retirement rules can be confusing. You work hard, you save your money and then the government sends you a letter with a bunch of acronyms like “RMD” and tells you what to do with your own cash.

I understand it’s frustrating.

Well, I’ve got some great news for you. If you have a Roth 401(k) from your job which is a new rule just started in 2025 that gives you more control. It’s a game changer.

What was the old, annoying rule?

Before 2025, if you had a Roth 401(k) and you turned 73, the government forced you to start taking money out every year. They called it a “Required Minimum Distribution” or RMD.

It didn’t matter if you didn’t need the money. It didn’t matter if you wanted to leave it alone to keep growing. You had to take it out. If you forgot? A huge, nasty penalty from the IRS.

It was the one big downside to a Roth 401(k).

What’s the new?

That rule is GONE.

Thanks to a law called SECURE 2.0, starting in 2025, you are no longer forced to take money out of your Roth 401(k) when you turn 73.

That’s it. That’s the whole thing.

Your money can now sit in your Roth 401(k) for as long as you want. It can keep growing, completely tax free and nobody can make you touch it until you’re good and ready.

This is the freedom you always wanted with your retirement savings.

What does this mean for YOU? Let’s make it personal.

You’re probably asking, “Okay, but what do I actually do?”

  1. If you are over 73 and were taking RMDs from your Roth 401(k): You can stop. You do not have to take a distribution for 2025. Let your account be. (You still have to take RMDs from a Traditional 401(k) or IRA, though).
  2. If you’re younger and still working: You can stop worrying about this future hassle. Your Roth 401(k) is now a perfect place to let your money grow for life without being forced to pull it out.
  3. The Big Question: Should I move my Roth 401(k) to a Roth IRA?
    This is a million dollar question. It used to be a no brainer to move it to a Roth IRA to avoid RMDs. But now it’s a trickier choice.
    • Keep it in the 401(k)? Your company’s plan might have stronger protection from lawsuits.Move it to a Roth IRA? You often get many more choices for investing.
    There’s no right answer. The best part is, now the choice is yours to make based on what’s best for you, not because of a forced government rule.

what’s your next step?

Don’t stress. This new rule is nothing but good news.

Your job is simple. Sometime this year, just give your 401(k) provider (the company that handles your account, like Fidelity or Vanguard) a quick call. You can say:

“Hi, I’m calling to confirm that my Roth 401(k) account is no longer subject to RMDs under the new 2025 rules.”

Let them confirm it for you. It will give you peace of mind.

This change is about giving your control back. It’s about letting you decide what happens with your hard-earned money. That’s a win in my book.