Contribution limits

[utrecht]

Does anyone know if I can contribute the full $15000 (might be $15,500) to my 457b AND another $15000 to my 401k? Or is it a max of $15000 in total?

[Martha]

Nice thing about 457 plans is that you can fully contribute to that plan and fully contribute to a 401k.

[Martha]

I found you a link that also explains your maximum contributions.

457(b) Contribution Limit Calculation Tools for 2007

[maddythebeagle]

How are you able to have both a 401k and a 457 plan? Change jobs in middle of the year or have 2 jobs?

[mja]

Work for the State of WI, for one. I have access to both a 403b and a 457. I used to fund the 403b, but when they upped the limit for the 457 a few years back I started contributing to that instead. Unfortunately I don't have enough income to max out both; instead I max out the 457 and the Roth, anything left over I let accumulate in a taxable account.

[maddythebeagle]

Oh, ok...a 403 and 457....probably a state university or hospital employee.... Contributing To 403b & 457b - $26k Allowed? - bWise Forums

I was looking for an explanation since I had thought there was a limit but this post indicates it changed in 2002. Nice deal if you want to put away 31k...In addition to Martha's link...

[utrecht]

Quote:

Originally Posted by maddythebeagle How are you able to have both a 401k and a 457 plan? Change jobs in middle of the year or have 2 jobs?

Im a government employee. A police officer to be exact. I didnt realize that I could contribute to both until yesterday. I recently paid off my swimming pool and my child support also ends next month so i have extra money to invest. I was planning on funding a Roth with this extra money but now I need to look at the 401k more closely.

Ive never looked at it much because the 457b is a much better deal.

[nun]

Quote:

Originally Posted by utrecht Im a government employee. A police officer to be exact. I didnt realize that I could contribute to both until yesterday. I recently paid off my swimming pool and my child support also ends next month so i have extra money to invest. I was planning on funding a Roth with this extra money but now I need to look at the 401k more closely. Ive never looked at it much because the 457b is a much better deal.

I have access to a defined contribution plan with employer match, very similar to a 401k, a 457 and a 403b. The "401k" contributions are a mandetory 11% of salary with a 5% match, I fully fund the 457 as I like that I can get at the cash without penalty as soon as I leave my job, no waiting until I'm 59.5 and I'm 75% fully funding the 403b to further reduce my gross income so that I can fund my Roth. State and government workers may not get the salary of some in the private sector, but there are often greater savings options available.