RMDs and contributions

[billfgrady]

For a 401(k) plan that permits non-owners to postpone RMDs beyond the traditional RBD of age 70 1/2, can employees who continue to work make 401(k) elective deferrals? What if the plan forces distributions at the traditional RBD? Can employees who continue to work continue to make contributions? I would assume not. Cites? Thanks

[Bird]

For a 401(k) plan that permits non-owners to postpone RMDs beyond the traditional RBD of age 70 1/2, can employees who continue to work make 401(k) elective deferrals? What if the plan forces distributions at the traditional RBD? Can employees who continue to work continue to make contributions?

Yes and yes. Not making contributions after 70 1/2 is an IRA "thing."

[Lou S.]

Restricting the ablity to make contributions based on attainment of age 70 1/2 would violate ADEA.

I agree with billgrady 100% on the yes, yes answers.

[Guest New TPA]

Restricting the ablity to make contributions based on attainment of age 70 1/2 would violate ADEA.

I agree with billgrady 100% on the yes, yes answers.

Are loans permitted to owner-employees in a SIMPLE 401k? I have conflicting information.

[PensionPro]

Are loans permitted to owner-employees in a SIMPLE 401k? I have conflicting information.

Yes, loans have been permitted to owner-employees in SIMPLE 401(k) plans since 1/1/2002.

[Guest Sieve]

Of course, though, loans would not be permitted from a SIMPLE-IRA.

billfgrady -- You asked for cites re: the continuing ability after age 70-1/2 to defer into a 401(k) plan, even if receiving MRDs from the plan. No cite is available, since it simply is not prohibited (as it is for an IRA by IRC Sections 219(d)(1) and 408(o)(2)(B)(i)).