Age 70 1/2 in 2004

[Guest Commuter Rex]

Participant is not in ownership group, wants to know if he can still contribute to 401k next year. Also, does he have to take RMD from plan and/or his IRA in 2004?

Thanks

[four01kman]

So long as individual is an employee, working full time, salary deferrals and employer contributions may be made, and no distributions are required.

[Harwood]

Required Minimum Distributions are still required from the IRA, regardless of employment status.

[WDIK]

Also, with respect to the qualified plan, plan language should indicate that minimum required distributions for non-owner employees commence the later of age 70-1/2 or retirement. It is possible that plan language could require MRD for both owners and non-owners.