SIMPLE IRA for someone 70 yrs old
I have a client who would like to create an employer sponsored plan to help him with a higher tax bracket. He is 100% shareholder in his company (that has 3 W-2 employees…including him). He is 70 yrs old. Assuming he can participate, I’m assuming he does not need to take an rmd for ’09 but would need to take one for ’10 and beyond.
Can he participate given his age?
Permalink Submitted by Anonymous (not verified) on Thu, 2009-02-19 17:35
Yes, there is no age limit for SEP or SIMPLE IRA participation, however RMDs are also required starting with the IRA RBD. You are correct that the 2009 RMD has been waived.