Can 73 year old make elective deferrals?

[david rigby]

That sounds right to me, but the minimum distributions are based on vested benefits. If there is a match or PS contribution, it might not be vested.

[Guest Don J. Smith]

Can a 73 year old make elective deferrals to his company 401(k). I am 90% sure he can but I would like some reassurance.

[Guest mo]

It seems that to prevent him or her from deferring would be to fly in the face of ADEA. I have this question come up all the time and have not been able to find any basis for excluding such an individual. Of course if they are in the 5% owner category, they must simultaneously be taking required minimum distributions.

[Guest TrustMe401k]

pax- wouldn't you think the 73 yr old would be 100% vested by being over the Normal Retirement Age? It would be rare that you could prevent this, from my experience. BUt I too agree that he can make deferrals.

[david rigby]

Well, certainly most 73-year-olds are 100% vested, but I interpreted the original question as meaning that this is a new employee. Using the definition of 65 and fifth anniversary as the definition of NRA will push the 100% vesting date out as far as possible.

[Dowist]

Also, the minimum distribution is based on the account balance at the last allocation in the previous calendar year - so contributions made this year are not subject to minimum distributions until next year. Also, the required beginning date doesn't come up until he is no longer employed (unless he is a 5% owner).