I have a client that is still working as a group insurance broker making a good income ($150k+) and he opened a solo 401k. He has a substantial IRA ($1mm+) from which he is taking RMD’s and I realize that the required beginning date for RMDs from the 401k is age 70 1/2 for more than 5% owners. My question is can he still contribute to the 401k? If he puts in $30k this year and has to take an RMD of 5 – 6% of that he still comes out way ahead tax-wise.
Thanks,
Larry