New Age 70½ Regulations For 401(k) Plans

If you plan to work past the age of 70½, you need to know about a new federal rule for 401(k) retirement plans that went into effect in 1998. People who continue to work after reaching age 70½ no longer have to start taking distributions from their 401(k) accounts on April 1 of the year after they reach 70½.

Recently released regulations from the Small Business Job Protection Act of 1996 allow employees to continue working after age 70½ and postpone taking the distributions until April 1 the year after the employee retires. For more information on how this affects your plan, contact your employer’s benefits administrator.

Source: Fourth Quarter 1998 SelectRE Investor, NRECA Retirement, Safety & Insurance Department