Owners over 70 1/2

[CJS07]

Does anyone know why there is the belief among the CPA & Financial Advisor community that once owners reach 70 1/2 and start taking RMDs that they can no longer continue to contribute to a 401(k) Plan?

[Mike Preston]

It is a disease. Very sad.

[Lou S.]

Does anyone know why there is the belief among the CPA & Financial Advisor community that once owners reach 70 1/2 and start taking RMDs that they can no longer continue to contribute to a 401(k) Plan?

Because many of them don't know the differences between IRAs and qualified plans.