457 & Simple in same year

Submitted by Khalil Andraos on Fri, 2010-08-20 19:59

Example: You work for 2 employers in the same year, say 6 months each. Employer A has a 457 and Employer B has a simple. Can you max out both plans or are you still under the $16,500 combined limit for 2010 (plus catchups, yada yada).

Thanks!



Submitted by Alan Spross on Fri, 2010-08-20 20:41

457 and SIMPLE IRAs have separate deferral limits and they do not interact.
1) Max deferral for SIMPLE IRA is 11,500; age 50 catch up is 2,500, but not available until 11,500 basic contribution has been made.
2) 457 deferral is 16,500; basic catchup is 5,500; supplemental catchup options may apply in some cases (check with plan for details).



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