Can You Still Contribute to a 401(k) After You Start Taking RMDs?
Can You Still Contribute to a 401k After You Start Taking RMDs?. Employer sponsored retirement plans offer automatic retirement savings and tax deductions while you are employed. However, the money accumulated in a 401(k) retirement plan can not continue to accrue tax-deferred indefinitely. The Internal Revenue Service requires that distributions be taken from 401(k) accounts and the taxes which were deferred while you were employed be paid in retirement.
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