457(b) and 401(k) contributions

[GoodSense]

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!

 

[barbarus]

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.

 

[GoodSense]

Thanks! That is good to hear.

 

[Martha]

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.

 

[GoodSense]

Great! Now the hard part: coming up with $15.5K to put away.

Thanks, Martha.