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.
Can owners (or other participants) make 401(k) deferrals after they attain age 70.5? Is th...
As always, thank you very much for going the extra mile!
Glen Archinal, EA, MSPA
Summit Retirement Plan Services Inc.