age 70 1/2 & older 401(k) participation

[Alan Simpson]

Active employees may still defer into a 401(k) plan whether they are over 70 1/2 or not.

As far as the RMD rule, recent legislation had allowed those that reach the age of 70 1/2 and who are not considered a 5% owner to defer taking RMD's until such time as they terminate their employment. However, this should be incorporated into the plan document.

[Guest Mark Manning]

Can active employees that reach 70 1/2 continue to make salary deferrals in 401(k)? If they are, are they still required to make RMD from plan? Thanks

Mark