• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Retirement Plan Question

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

wnwniner

Junior Member
What is the name of your state? OHIO
I contributed to my old employeers 401(k) in 2007 before recently changing jobs to a local city government which has a 457 plan. My question is related to contribution limits-does the money I put into the 401(k) count against my 15,000 limit for the 2007 year, or am I allowed to defer a total of 15,000 into each type of deferd comp program?
 


efflandt

Senior Member
Since 401(k), 457(b) and similar employer plans have the same annual (and age 50+ catch up) limits, I would assume that would apply to total combined contributions to both. The only difference is that the 457(b) has a special additional catch up beginning 3 years before normal retirement age. Note that employer matching does NOT count towards your contribution limit.

If you are thinking of contributing more than $15,000 (or $20k age 50+) it would be wise to contact the IRS to see if that is allowed. Otherwise you might consider also contributing to a Roth IRA, if eligible and not already doing that. Employer plan does not affect IRA limits, just whether traditional IRA contributions are deductable (Roth contributions are not deductable, but qualified gains are tax free, and no required distribution during your lifetime).

457(f) appears to have no contribution limits, but not sure what distinquishes that from 457(b).

A brochure comparing 401(k), 403(b) and 457's is at http://www.irs.gov/pub/irs-pdf/p4406.pdf
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top