Advertisement
retirement

Contributing to Retirement Accounts When You Haven't Fully Retired

Some part-timers can keep socking money in a 401(k) and avoid required minimum distributions. It depends on your plan's rules.

Question: If I "retire" from full-time work but continue with the same employer part-time, can I still contribute to my company's 401(k), or do I have to stop at age 70½? Also, can I avoid having to take RMDs at age 70½ because I’m still working there, or do I need to work a certain number of hours to qualify?

Advertisement - Article continues below

Answer: Employers can't prevent employees from participating in their 401(k)s just because they reach a certain age, so you should be able to contribute even after age 70½ if you qualify otherwise. However, some employers let part-time workers participate in their 401(k)s while others do not, and the number of hours required to be eligible can vary by employer, too, says Keith McGurrin, a certified financial planner with T. Rowe Price.

Whether or not you're still working, you'll need to start taking RMDs from your traditional IRAs after you turn 70½. You can't make new contributions to traditional IRAs after age 70½, but you can contribute to a Roth IRA at any age if you have earned income from a job.

Advertisement
Advertisement

Most Popular

How To Buy a Roth IRA When You Make Too Much To Qualify For One
Roth IRAs

How To Buy a Roth IRA When You Make Too Much To Qualify For One

With their tax-free growth and tax-free withdrawals, Roth IRAs are a great deal — if you qualify. If you don’t, well, there’s still a way to get into …
September 23, 2020
Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check
Coronavirus and Your Money

Social Security Recipients, Veterans Must Act Now to Get Extra $500 Stimulus Check

The deadline for seniors and veterans to request an additional $500 stimulus check for a dependent child is approaching fast. See how you can claim yo…
September 25, 2020
High-Tech Aids for Aging in Place
Caregiving

High-Tech Aids for Aging in Place

Apple Watch and other technology provides fast feedback, comfort for older users, and a powerful assist for caregivers.
September 23, 2020

Recommended

HSA Limits and Minimums
health savings accounts

HSA Limits and Minimums

Annually adjusted contribution limits and other requirements must be met if you're covering health care costs with a Health Savings Account.
September 21, 2020
Don’t Be Paralyzed by Uncertainty
retirement planning

Don’t Be Paralyzed by Uncertainty

You definitely need a plan, because what’s ahead could be scarier than what’s behind us.
September 21, 2020
Insurance for Long-Term Care at Home
retirement

Insurance for Long-Term Care at Home

In the wake of COVID-wracked nursing homes, increasingly more people are looking at options to age in place with long-term care insurance.
September 17, 2020
Medicare Basics: 11 Things You Need to Know
Medicare

Medicare Basics: 11 Things You Need to Know

There's Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare --…
September 16, 2020