Permalink Submitted by Douglas Bauerband on Fri, 2018-08-03 19:58
client is 76 in sept of 2018still working for company full time for the past 40yrsstill funding his 401k and company still matchingQuestions:when does have to start taking his RMD even though he is not retiring yet?when does he have to stop funding his 401k even though he is working?thank you,Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-03 20:16
He can continue to contribute as long as he continues working. If he reduces his hours, he will need to determine how much part time work is required to still enable him to be eligible for the plan. Assuming he was not a more than 5% owner of the company when he was 70.5 his first RMD will be for the year in which he retires, and that RMD must be distributed no later than 4/1 of the following year.
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-03 19:33
What was the question?
Permalink Submitted by Douglas Bauerband on Fri, 2018-08-03 19:58
client is 76 in sept of 2018still working for company full time for the past 40yrsstill funding his 401k and company still matchingQuestions:when does have to start taking his RMD even though he is not retiring yet?when does he have to stop funding his 401k even though he is working?thank you,Douglas
Permalink Submitted by Alan - IRA critic on Fri, 2018-08-03 20:16
He can continue to contribute as long as he continues working. If he reduces his hours, he will need to determine how much part time work is required to still enable him to be eligible for the plan. Assuming he was not a more than 5% owner of the company when he was 70.5 his first RMD will be for the year in which he retires, and that RMD must be distributed no later than 4/1 of the following year.