Guest JenMac Posted October 13, 2005 Posted October 13, 2005 I know (or I think I know) that participants inside of a 401k can continue to contribute after age 70 1/2 as long as they have earned income. I understand that RMD must also be taken after age 70 1/2. I cannot find any information to support either way. Any advice? Thanks!
Guest JKG Posted October 13, 2005 Posted October 13, 2005 The only retirement vehicle that restricts contributions at age 70 1/2 is the Traditional IRA. IRC, Sec. 219(d)(1). The sections that deal with other plans do not contain a similar provision, thereby allowing for contributions at that age and later.
JanetM Posted October 13, 2005 Posted October 13, 2005 If plan is written to allow it, non keys and non owners don't have to take RMD at 70.5 if they are still active. see what I get for talking and typing at the same time. I have to edit my post. JanetM CPA, MBA
pmacduff Posted October 13, 2005 Posted October 13, 2005 Janet - I agree about the non-keys, but I thought that owners were specifically required to take them, even if still actively working...?
Belgarath Posted October 13, 2005 Posted October 13, 2005 Only 5% owners, under the top heavy definition in IRC 416, (which actually means more than 5% owners, taking into account attribution under 318.)
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