Summary: Today TaxMama® hears from Patricia in the TaxQuips Forum, with this question. “I have a client who is 70.5 and working for his own company. He has a 401k plan. Does he have to start taking distributions from his 401k because he is 70.5, even though he is still working? Can he still contribute to his 401k since he is still working? Finally, is there a difference in any of the above if his company is an S or C Corp?” Dear Patricia, Mike Reed, our Enrolled Agent in California replies: Yep – because he is more than a 5% owner, RMD’s are required. RMDs are generally not required if still employed, even part time, at 70.5+ (never seen one that was required, but still used the word “generally”), with the exception being more than 5% owner. From the
