multiple elective deferrals

[DixieEA]

Can a high income taxpayer who is employed by employer who meets qualifications to
have a 401-k, 403-b,and 457-b, contribute the maximum 15500 to each plan in the same
year.


Thanks, DixieEA

[Bees Knees]

No. An employee is subject to one set of elective deferral limits for all plans.

TTB, page 13-4 says:

...Employee elective deferral limits apply to all plans of
the participant. For example, if a participant under
age 50 in 2007 elects to defer $12,000 to the 401(k)
plan of his first employer, the elective deferral limit
for his second employer is $3,500 ($15,500 overall
limit minus $12,000). Likewise, if a self employed
individual under age 50 elects to defer $10,500 to his
SIMPLE IRA, his elective deferral limit to a second
job offering a 401(k) plan would be limited to $5,000
($15,500 minus $10,500). [IRC §402(g)(3)]

[DixieEA]

457 plan exception?

Bees, I was wondering if there was an exception if the other plan was a 457 plan since
in the TB 13-21, section 457 deferral plan is listed under Nonqualified Plans.


DixieEA

[Bees Knees]

I don't know. I seem to recall a message board discussion on that years ago that that may be the case, but I don't know. TTB does not have any information on that issue.

[Bees Knees]

http://www.thetaxbook.com/forums/showthread.php?t=4632

This is the thread I was thinking about. I don't know if it is true, but appears to be correct. The 457 elective deferrals are not coordinated with the qualified plan elective deferral limits.

[DixieEA]

Thanks Bees

Bees, think it would be allowed, taxpayer is new client, but has done in the past and has
not had a problem in the past.

DixieEA

[JCH]

The 457 plan limits are independent of the 403(b) limits. I have several clients who max out on both their qualified (403(b)) plans and non-qualified plans (457).

[DixieEA]

thanks JCH

Thanks, that makes me feel a whole lot better.

DixieEA