Knaub & Company, P.C.

certified public accountants

PO Box 161030, Big Sky, MT 59716

Phone: 406-995-6040

Fax: 406-993-2772


December 2017

Client Profile

Article Image

George is 71 years old and has returned to work after three years of retirement. He wants to put a little more money away for a comfortable retirement. Where can he still save at 71?

George owns a traditional IRA that required him to begin required minimum distributions by April 1 of the year after he turned 70½, whether he went back to work or not. However, he can contribute to a Roth IRA after that age to the extent he has earned income, within limits.

People who continue working and contribute to a SIMPLE IRA or 401(k) plan can continue to contribute to them after age 70½. However, they also may be required to begin RMDs.

George will owe tax on some or all of his employment earnings if his pay from work and other income exceeds certain limits. If George were younger than retirement age, say 62 to 65, he would likely also lose a portion of Social Security benefits during this time due to work income exceeding low limits.

Client Profile is based on a hypothetical situation. The solutions we discuss may or may not be appropriate for you.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.