Hello,
Thank you for participating. First, I would like to commend you on working past the age of 70. Since you are still working, you can avoid required minimum distributions and continue contributions to your employer-sponsored 401(k) and that is a good way to decrease taxable income for the year. Although, I would suggest taking a couple of things into consideration when you decide to continue contributing to 401(K) or not:
1. Take a stock of your situation to see what will be your approximate retirement income once you retire. If you believe you will be in a higher tax bracket ( not common) when you retire, then it is better to pay taxes on the income now when you are in a lower tax bracket. If you will be in a lower tax bracket after you retire then it is wise to contribute to your 401(K) now.
2. How does your state tax retirement income? Some states do not tax retirement income or tax retirement income partially. If you are in one of those states then of course it is better to contribute to 401(K) now.
Another thing to keep in mind is the fact right now you are earning so it is easier to pay taxes than when you are on a limited retirement income.
I hope this helps.
