Age Restrictions on Individual 401K Contributions? RMDs?
Can a self employed person contribute to an Individual 401K who is still showing net income each year if they are over 70 1/2? If so, RMD based on 12/31 of prior year? In essence can they contribute in the same year as they have to take an RMD? At what age can you NOT contribute anymore?
Permalink Submitted by Alan Spross on Fri, 2007-10-26 21:04
You can contribute with no age limit, therefore as of age 70.5 you can be making contributions while you are also distributing the RMD requirement which is required since you are obviously a more than 5% owner of the business. The RMD requirement is based on the prior 12/31 plan balance.