72-year-old contributing to Simple at work?

Is it okay for someone who’s 72 but still employed to contribute to the SIMPLE plan where she works?



Yes. There is no age cap .



[quote=”denise@applebyconsultingi“]Yes. There is no age cap .[/quote]

Do you also mean she will allowed to not only make the contribution, but also to get the deferral?

I am having trouble trying to reconcile and/or make a distinction between the rules for Traditional IRA’s and SEP IRA’s and the instructions on form 5329-page 4 ( [u]any amount you contribute for the year in which you reach age 70 1/2 or a later year is an excess contribution because your contribution limit is zero[/u]), and the rules for a SIMPLE plan. Even though the SIMPLE has its own section IRC 408(p), the core starting point for all three plans appears to be IRC 408(a) & IRC 408(b). So why shouldn’t the rules for traditional IRA and SEP -IRA also have some relevance and/or application for the SIMPLE plan?

I don’t mean to challenge your greater expertise, and instead hope to benefit from your greater expertise, if you please. Can you either tell me the specific authority OR can you generally give me a tip on how I should be interpreting and/or approaching the logic of reading the code and regs on this matter?

Thanks in advance.

Dave Storhaug, CPA



I have relied on the following: Traditional IRAs are deducted under the authority of section 219, and that’s where you find the language telling you there’s no more contributing once you are 70 1/2. On the other hand, SEPs and SIMPLEs have their deduction limit described at sections 404(h) and 404(m) respectively. Section 404 is also where the deduction limits for qualified 401 plans are described, and section 404 does not mention any age.

Even more explicit than that, I recently saw someone cite a 408 regulation relative to this question. I’ll see if I can find that cite.



[quote=”[email protected]“]I have relied on the following: Traditional IRAs are deducted under the authority of section 219, and that’s where you find the language telling you there’s no more contributing once you are 70 1/2. On the other hand, SEPs and SIMPLEs have their deduction limit described at sections 404(h) and 404(m) respectively. Section 404 is also where the deduction limits for qualified 401 plans are described, and section 404 does not mention any age.

Even more explicit than that, I recently saw someone cite a 408 regulation relative to this question. I’ll see if I can find that cite.[/quote]

Thanks, your information is very helpful.



Hi Martin,
408(p)(4) for SIMPLEs maybe? The eligibility requirements do not make any reference to age. Compare it with 408(k)(2) for SEPs which does make reference to age requirements, except that there can be a minimum age, but no maximum age.



[quote=”denise@applebyconsultingi“]Hi Martin,
408(p)(4) for SIMPLEs maybe? The eligibility requirements do not make any reference to age. Compare it with 408(k)(2) for SEPs which does make reference to age requirements, except that there can be a minimum age, but no maximum age.[/quote]

Thank you Denise, and Thank you, Martin



You’re welcome, Dave. And hi to you too, Denise. I agree that the Sep and Simple participation requirements support the position that there’s no maximum age restriction for participation. In fact, a failure to follow these requirements invalidates the plan. So in a SEP for example, the employer must make a contribution to every eligible person’s Ira, even if that person doesn’t want it.

I couldn’t find any 408 regulation on the 70 1/2 aspect. But the IRS web site has a FAQ for SEPS that addresses the question.



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