Participant, age 76. Can he still make elective salary deferrals?

[Guest Donna Henderson]

Can a participant, age 76, still make salary deferrals? He is a full-time active employee and has not yet begun his RMD.

[Jon Chambers]

Yes--no issues here.

[david rigby]

Possible issue if:

EE is vested, and

plan has not been amended to new 70-1/2 rules,

or

EE is a 5% owner?

[Jon Chambers]

Even if minimum distributions are required, he must still be permitted to make contributions. Otherwise, plan would violate ADEA.

[david rigby]

Correct. My point is that there may be another issue if the EE is still subject to 70-1/2 distributions under this plan.

Of course, the timing is different.