SIMPLE EMPLOYEE CONTRIBUTION AFTER AGE 70 1/2
The Company has established a Simple Plan this October. One of the owners of the business is already 70 1/2. Can that individual contribute to a Simple if he/she is still working for the company?
The Company has established a Simple Plan this October. One of the owners of the business is already 70 1/2. Can that individual contribute to a Simple if he/she is still working for the company?
Permalink Submitted by Alan Spross on Tue, 2008-10-28 21:04
Yes. But RMDs also start at 70.5.
Permalink Submitted by charles lore on Thu, 2008-10-30 00:24
If owner was less than 5% owner could he hold off on rmd?
Permalink Submitted by Denise Appleby on Thu, 2008-10-30 00:30
[quote=”[email protected]“]If owner was less than 5% owner could he hold off on rmd?[/quote]
No. That rule does not apply to IRAs ( including SEP and SIMPLE IRAs).