Can owners (or other participants) make 401(k) deferrals after they attain age 70.5? Is this a plan document issue; does the document need to allow for this?
Yes, and no. A plan document does not have to explicitly state that a participant over 70 1/2 can defer; a 401(k) plan is not permitted to impose a maximum age on the right to defer. With regard to owners, the same rule applies, although minimum distributions will also be required after age 70 1/2. These are two separate and independent rules; one does not affect the other.
A prospective client has a 401(k) plan. The investment of the plan's assets is directed by...
Thank you for your answers to the "401(k) to SIMPLE 401(k)" questions. Excellent. You all are like having a "security blanket." I write you to get rid of my "what ifs." You make it easier for me to sleep at night. As always, I appreciate your precise, professional, responses. Enjoy the New Year's Celebrations - I now can.