This question seems to keep coming up more and more since people are working longer. Clients often ask if the have to take their “required minimum distribution” even though they are still working past age 70-1/2.
The “still working” exception only applies to your current employer, only if the employer plan allows it, and you own less than 5% of the company That’s it, that simple! The definition of “still working” must be defined in the plan document (i.e. # of hours required).
This rule does not apply to IRAs, SEP plans or SIMPLE plans.
However, if the employer plan does not allow the “still working” exception, which is fairly rare, and you are “still working,” you can continue to contribute to the plan.