Guest JimmyG Posted November 22, 2006 Share Posted November 22, 2006 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? Link to comment Share on other sites More sharing options...
thepensionmaven Posted November 23, 2006 Share Posted November 23, 2006 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. Link to comment Share on other sites More sharing options...
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