401K & RMD

Submitted by Rusty Bynum on Mon, 2015-02-23 18:44

IF someone is currently working for a company and is over the age of 70 1/2 what are the rules pertaining to the following questions:
1. Can the employee continue to make 401K contributions?
2. When are they required to begin their RMD’s?



Submitted by Alan - IRA critic on Mon, 2015-02-23 19:54

  1.  Yes. Contributions cannot be legally limited due to age.
  2.  Usually, not until after they retire unless they are 5% or greater owners of the company. However, a few plans may require everyone to start RMDs at 70.5 regardless of ownership. The company should notify the employee if RMDs are required while still working for any reason.

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