Two employees in our organization, one age 71 and one about to turn 70. Both are working -- one full time and one 60% time. The one who is about to turn 70 was told by her broker that she needs to start mandatory withdrawal from her 403(b) or else she will suffer tax consequences. My understanding is that as long as an employee is working, they can contribute new money into their 403(b) and not be subject to the mandatory withdrawal at age 701/2. Only one article I saw said that mandatory withdrawal occurs only when a person reaches the age of 70 1/2 or retires, whichever comes last. I believe this to be true. Can anyone tell me if I'm correct? Thanks.