Sorry if this has been addressed in previous posts, but I'm planning for a client who is 71 years old and still working, and has a relatively large 401(k). He plans on working for 2 more years and would like to keep contributing to the 401(k). Is there a way to still show contributions to the 401(k) in ESPlanner and stop the minimum required distributions, as he should not have MRD's until he quits working? Thanks and happy new year!
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We have several clients in this situation and I suspect we will have many more in the future.
This may be nit-picking but is an illustration of what I would call a program assumption that I have had to work around in esPlanner on different occasions. I don't like it when a programmer forces a general rule (when there are exceptions) because it fits in most cases. I know it is the safer approach to assume that all retirement accounts have an RMD at 70 1/2 and that contributions stop then; but it does not reflect reality. Another prime example is the prohibition from entering wages--post retirement. That is becoming less and less the case every year.
Scott Neal
I'll have to confirm that there are not adverse effects in the computation but it's an easy change to the U.I. I think I can accommodate to allow this.
Hi Scott, Give me a call re this. Are you sure the MRDs are suspended if you are still working? This is a bigger deal than Lowell suggested to implement because it involves the computation engine. I think I can propose a work around for you -- 617 834-2148. best, Larry