? On 401k

[A HERETIC I AM]

9. Roth IRA's are funded with what I call "Checkbook Money"

By that I mean money that is your take-home pay from work, if you work under a W-4. So you are right, in that those accounts are funded with money that has already been taxed.

(The same applies if you work under a 1099 or are self employed, as long as your required filings and estimated taxes are up to date)

Fund the account, choose asset classes and securities, your investments grow and it all comes out tax free, with some minor exceptions.

They have several advantages over traditional IRA’s and 401(k)’s (both of those have similar RMD requirements) in that there is no age limit to contribute to them and no mandatory age to begin taking distributions. They also have other advantages when used to pass assets on to heirs.

A thorough reading of IRS Publication 590-A and Publication 590-B can help understand them more completely.