5% Owner over 701/2

[Guest mb4_98]

Please confirm for me that a 5% owner over 701/2 is still eligible to defer into a 401k plan and recieve profit sharing contributions. They are however required to take the RMD. Is this right or not, I'm somewhat confused

[g8r]

You are correct. A more than 5% owner who is 70 1/2 may continue deferring and receiving allocations but is also required to receive RMDs.