Can elective deferrals be made after age 70 1/2 ?

[Moe Howard]

Must all 401(k) plans allow an active participant to continue to make elective deferrals after age 70 1/2 ?

Under what circumstances might such a participant (over age 70 1/2) be prevented from continuing to make elective deferral contributions ? (Would such prevention be mandated by IRS, ERISA, or simply at the desire of the plan sponsor ?)

Is there a tax code section or ERISA section that addresses this matter ?

[Guest Harry O]

See Prop. Reg. 1.411(B)-2© and (d). See also ADEA.

[Tom Poje]

I can think of no reason. It is only IRAs that prevent someone from 'deferring' after 70 1/2.

in fact, now that minimum distributions are not required to be taken as long as you are 70 1/2 there is even more reason to keep deferring without all that trouble.

[mbozek]

Tom: deductible contributions are permitted to an IRA after age 70 1/2 is reached if the IRA is used to fund a SEP or simple plan. Qualified plans cannot restrict participation by employees after the minimum age for participation in IRC 410(a) is attained. All 403(B) plans must permit participation for salary reduction for all employees (except certain students) who contribute $200 or more without any age or service requirement.