NECPA in NEBRASKA Posted June 21, 2016 Report Share Posted June 21, 2016 My client is self employed as a farmer. I know that he can't contribute to a traditional IRA after 70.5, but I am having trouble finding any place that says he can not contribute to a SIMPLE IRA after 70.5. I see that an employer must still contribute matching for an employee over 70.5. I am hoping that he can continue to contribute for 2017, even though he will be making withdrawals. I've Googled, used Tax Book, IRS pubs and I can't find a place where any of them say that you can't be over 70.5 if you are self employed. Thanks to anyone that can confirm or rebut my opinion. I did fake a return in ATX and the contribution was allowed, but I don't want to take that as gospel. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted June 21, 2016 Report Share Posted June 21, 2016 QF says that is one of the advantages to employer and self-employed plans. Withdrawals must still begin by April 1 of the year following the year the account owner turns age 70 1/2 but, as long as the individual still has earned income, contributions are allowed. I did this and intend to do the same for the next couple of years that I intend to keep working. I am 70 1/2 this year. 3 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted June 21, 2016 Report Share Posted June 21, 2016 From this IRS page, in plain language: Quote Can I contribute to a SIMPLE IRA of a participant over age 70 ½? Yes, you must. Employees who are age 70 ½ or over may make salary deferral contributions to their SIMPLE IRAs. Employers must continue to make matching or nonelective contributions to employees’ SIMPLE IRAs even after an employee reaches age 70 ½. However, an employee who is age 70 ½ must also begin to take required minimum distributions from the account. Employees may not be excluded from participating in a SIMPLE IRA plan based solely on their age. Participation requirements are in IRC 408(p)(4)(A) and 408(p)(4)(B) here: https://www.law.cornell.edu/uscode/text/26/408 3 Quote Link to comment Share on other sites More sharing options...
Roberts Posted June 22, 2016 Report Share Posted June 22, 2016 working at 70 1/2? Mentioned one day at the office that our rental condo would likely be our home in this metro area when we retire and we'd use our primary home to fund the purchase of a condo in Florida or someplace else. My 82 year old co-worker about fell over - the horror of retiring. Why would anyone want to do that???? 3 Quote Link to comment Share on other sites More sharing options...
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