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.
What are the laws concerning household employees and business employees in the same 401(k)...
"We are so impressed by the services we receive from TAG. The rapid response time is unparalleled in our industry; we have confidence in the answers provided; and the web site is easy to navigate. It is a delight to work with them!"