Is it worth it for my husband to contribute to his 401(k), despite his age?

My husband is 72 years old and he was recently offered a one year contract to work. The company has a 401(k) plan. He plans to contribute $25,000 for that 1 year of work. Is it worth it to contribute since he is already 72 years old? By the time he leaves office, he will start withdrawing RMDs.

Retirement Savings, 401(k)
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January 2017

The RMD for a 74 year old on $25,000 is just over $1,000. So by contributing $25,000 to a 401(k), you defer taxes on $25,000 of taxable income. According to the IRS life expectancy table, that $25,000 will be withdrawn from the IRA over the next 23.5 years, which allows you to continue to defer taxes on the gains made on the balance over that time.

As long as you have more than $25,000 of taxable income, I would make the contribution.

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