Self Employeed

[Jilliandiz]

Client is Self Employeed at Age 78, is there anything he can contribute to?

IRA, SEP, etc.??? Any ideas for this old folk, this request you dont see happen every day.

Also, since he is over 70 1/2, I understand he would also have to begin taking is RMD regardless.

Any Thoughts?

[Lame Duck]

He should be able to contribute to any type of qualified plan as long as he is working and has earned income to support the contributions. He would be subject to immediate MRDs and, depending on the type of plan and amount contributed, this could negate most of the tax benefit of the contribution.

Provided he has not sponsored a qualified plan that has terminated in the past 5 years, your client may be able to start vesting accrual from the effective date of the plan. This would delay the MRDs for up to 3 years if a 3-year cliff vesting schedule is elected.

[saabraa]

Age is not a problem in contributing to qualified 401(a) plan or SEP Ira. Traditional Ira contributions are not allowed once he's reached the year when age 70 1/2 is attained.