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


Alan Simpson

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Posted

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
Posted

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

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