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SIMPLE IRA Rules

Q: The company holding my client's SIMPLE IRA said that he cannot continue to contribute to the SIMPLE IRA after age 70½, and that he must take RMDs. Are both of those statements true?

A: It is true that your client must take RMDs at age 70½, even if he still is working; however, he CAN continue to contribute to the SIMPLE IRA (unlike if this was a traditional IRA.). Tell the company to check IRS Publication 590 for accurate information!