Sign in to follow this  
Followers 0
JimmyG

Contributions after age 70 1/2 for owner

2 posts in this topic

I have a very small 401(k) plan where the owner is going to start having to taking an RMD this year. Question, as he is still working full time, can he continue to contribute to the plan (deferrals, match and discretionary Profit Sharing contribution)?? So, if he has to take out, let's say, a $5,000 RMD distribution (the plan isn't that old, so he doesn't have a huge balance), could he simply defer $20,000 into the plan and more than wipe out the taxes that he'd owe on the RMD?

Share this post


Link to post
Share on other sites
I have a very small 401(k) plan where the owner is going to start having to taking an RMD this year. Question, as he is still working full time, can he continue to contribute to the plan (deferrals, match and discretionary Profit Sharing contribution)?? So, if he has to take out, let's say, a $5,000 RMD distribution (the plan isn't that old, so he doesn't have a huge balance), could he simply defer $20,000 into the plan and more than wipe out the taxes that he'd owe on the RMD?

He can still contribute to the plan as long as he takes out the minimum RMD by 12/31.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0