Just speaking hypothetically --
Someone has been contributing $2K per monthly paycheck to his 401(k), which would total $24K for the year. But in August, being 68 years old, he retires.
Can he still pay the remaining $8K into the 401(k) for that year, or must a 401(k) be funded exclusively from payroll deductions?
Possibly relevant facts:
In general, a 401(k) can only be covered by payroll contribitions. However, subject to plan limits, he can contribute up to 100% (more likely, 92.35%) of his last few paychecks, up to the $18-24K total for the year.
If he has a side business, he could set up a "solo 401(k)", and contribute the remaining $8k there, if he has $8k in progits to contribute.
And there is always the $6500 IRA limit, if elegible for a deductible IRA.
-- Arthur Rubin, AFSP, CRTP Brea, CA
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