If you're still working, you can contribute the full amount of your salary deferral to a Roth 401 (k) regardless of your age. Customers who are still working after age 70 and a half can generally continue to contribute to employer-sponsored 401 (k) accounts and SEP IRAs. In fact, employers must continue to make employer contributions to the SEP IRA of an employee over 70 and a half years old if they make similar contributions to the accounts of younger employees. Many older workers want to continue contributing to their retirement plans and receive distributions only after they retire.
For those looking for additional options, IRA buy physical Gold is a great way to diversify their retirement portfolio. In Q&A this week, a couple of readers over 70 and a half years old seek clarification on what they can and cannot do with their 401 (k) s. As long as you're working, you'll still be eligible to contribute to the plan. If your plan allows it, you will not be required to accept the minimum distribution (RMD) required from a 401 (k) plan in which you actively participate, as long as you continue to work, even part-time, unless you own 5% or more of the company. RMDs must be requested by April 1 of the year following the year you retired or your 70th birthday and a half, whichever comes later.
It is subject to the RMDs of any other plan from any previous employer, to traditional IRAs and to inherited IRAs or to inherited Roth IRAs. If you have a normal Roth IRA, RMDs don't apply to it. In all cases, RMDs are calculated for each account separately and RMDs must be removed from each account individually, except for traditional IRAs. You're still calculating RMDs per account, but you can distribute RMDs attributable to traditional IRAs and IRA-based plans from any combination of those IRAs you choose.
If at age 70 and a half you met all the requirements to be exempt from RMD and still meet those requirements. You must not be subject to them. The requirements must be in your plan document. You can leave your Roth IRA to any person or group of people who wish to designate it as a beneficiary.
The basic rules allow beneficiaries to leave the money in an inherited Roth IRA and be forced to accept only the minimum required distribution each year if they have everything ready by December 31. They can receive a lump sum from you at any time. If you haven't eliminated anything from that plan since the trigger event, you're probably eligible to receive the NUA treatment for the company's stock. The basic references are IRS publication 575, which indicates the employer's distribution of values, and the Form 4972 worksheet. Your employer is right to be reluctant.
It may not be an ERISA plan, but there are laws and rules that govern it. If your plan documents don't allow it, you can go to the synagogue to modify the plan. That is an absolutely valid consideration, but it is not entirely clear that such a cutback is inevitable. Many doubt that reducing retiree benefits in 2033 will be more popular then as it is now.
Even with a reduction in profits of the magnitude one fears, the return on hold is likely to be better than that offered by other government-backed inflation-adjusted investments. Previous changes to the system have been less dramatic than a widespread outage such as the one you describe. Most of the changes have focused on raising taxes on workers, rather than reducing benefits. Well, you can suspend and get delayed credits, but you can't get a spousal benefit either.
To get only a spousal benefit from your work history and allow your retirement to allow you to get delayed credit, you would have to file a restricted application. Because you filed your application with your FRA, you are not eligible to file a restricted application. Therefore, you either apply for spousal benefit or file and suspend (which would mean not receiving checks while you are suspended) to get delayed credits. Can Working While Receiving Social Security Can You Cancel 401 (k) Plan Contributions? More than 90% of the final return on your investment depends on the asset classes you choose.
Dan Moisand is a MarketWatch contributor and financial planner at Moisand Fitzgerald Tamayo in Orlando, Florida. Visit a quote page and the recently viewed tickets will be displayed here. Keep in mind that those who are 70 and a half years old or older and make contributions to a traditional IRA, a SIMPLE IRA, or an SEP IRA will continue to have to apply for an RMD, even if they are still working. However, you can still contribute to a Roth IRA and make cumulative contributions to a Roth or traditional IRA, regardless of your age.
The rules for contributing to an IRA after 70 and a half years depend on whether the account is a traditional IRA, a Roth IRA, or a SEP IRA. Direct contributions to a traditional IRA are not allowed after the client turns 70 and a half years old, although the client can transfer funds from another type of retirement account to their traditional IRA. . .
