This also should work..
declare @people as table (
person varchar(20),
dob date
)
declare @SDate date
set @SDate= '5/3/2013'
insert into @people(person,dob)
values ('Frank','3/20/1990'),
('Joey','12/31/2000'),
('Sue','2/6/2012'),
('Mary','4/1/2013'),
('Bil','5/3/2012'),
('Bob','1/1/2013'),
('Will','10/1/2012')
SELECT person,
dob,
case when DATEDIFF(MONTH,dob,@SDate)/12>0 then convert(varchar,DATEDIFF(YEAR,dob,@SDate))+ ' Years' else convert(varchar,DATEDIFF(MONTH,dob,@SDate)) + ' Months' end as age
FROM @people
where DATEDIFF(MONTH,dob,@SDate)>=4 and DATEDIFF(YEAR,dob,@SDate)<=12