Join Early Retirement Today
Thread Tools Search this Thread Display Modes
457(b) and 401(k) contributions
Old 08-03-2008, 12:46 AM   #1
Full time employment: Posting here.
GoodSense's Avatar
Join Date: Jul 2007
Posts: 678
457(b) and 401(k) contributions

This is a pretty dumb question, and I think I know the answer, but just wanted to double-check with the board here.

In May, I switched careers from the public sector to private. Up to the point of my resignation, I had already contributed the max into my 457(b) plan ($15.5K). My new company has a 401(k) plan. My understanding is that I can contribute another $15.5K of tax deferred money into the 401(k) plan.

I checked with online sources, and they all seem to suggest that's correct. (ie. 457(b)wise : 457(b) FAQs. "
Can an employee contribute to a 457(b) and a 403(b)?") However, I have not found the answer on the IRS website. There is a small lingering doubt in my mind, since I haven't heard it directly from the horse's mouth, so to speak.

Any knowledge/personal experience is greatly appreciated. Thank you!
GoodSense is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-03-2008, 08:05 AM   #2
Recycles dryer sheets
barbarus's Avatar
Join Date: Aug 2007
Posts: 433
Yes, you can contribute to BOTH a 403(b) and 457(k) during the same year.
If you're an old man, you can contribute a maximum of $20,500 to each entity for a total of $41,000 pretax. A good way to save money, especially if you're in a high tax bracket.

One hopes these programs continue and the maximum contributions are raised to more realistic levels.
Consult with only myself as your adviser or representative. My thoughts should be construed as investment advice of the highest caliber. Past performance is but a pale shadow and guarantee of even greater results in the future.
barbarus is offline   Reply With Quote
Old 08-03-2008, 08:08 AM   #3
Full time employment: Posting here.
GoodSense's Avatar
Join Date: Jul 2007
Posts: 678
Thanks! That is good to hear.

GoodSense is offline   Reply With Quote
Old 08-03-2008, 09:38 AM   #4
Moderator Emeritus
Martha's Avatar
Join Date: Feb 2004
Location: minnesota
Posts: 13,228
I agree with Barbarus and add that this rule only applies to 457 plans. Other plans, like multiple 401ks or 403bs, will have their salary deferral contributions limited to a total of $15,500 plus $5000 if 50 and over. The rule for 457 plans is different because your own contributions are not considered to be salary deferral contributions.

No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Old 08-03-2008, 05:27 PM   #5
Full time employment: Posting here.
GoodSense's Avatar
Join Date: Jul 2007
Posts: 678
Great! Now the hard part: coming up with $15.5K to put away.

Thanks, Martha.
GoodSense is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
457 Plan Ginger FIRE and Money 18 09-09-2007 04:49 PM
457, best investment ever nun FIRE and Money 10 10-19-2006 01:23 PM
457, 401(k), DBP JWV FIRE and Money 2 02-11-2005 04:51 AM
Paying off Debt vs. 401(k) Contributions BigMoneyJim FIRE and Money 4 02-10-2003 11:06 AM

» Quick Links

All times are GMT -6. The time now is 08:24 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.