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Posted

There is nothing written that says a participant over 70 1/2 cannot participate in a 401k plan correct? They are just still subject to RMD's right? But they are allowed to continue deferring?

Posted

I agree that they can continue to defer and that they are subject to the applicable RMD rules.

...but then again, What Do I Know?

Posted
There is nothing written that says a participant over 70 1/2 cannot participate in a 401k plan correct? They are just still subject to RMD's right? But they are allowed to continue deferring?

Are they a common law employee or a 5% owner? If owner, then correct, they are required to take RMDs. If not an owner then RBD is 4/1 following later of the year they separate or attain 70.5.

JEVD

Making the complex understandable.

Posted

Be very careful about vesting.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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