Multiple Retirement Plan Options
I have a client (Age 38) that makes 320K as an employee and 150K as Independent contractor with a seperate company.
My understanding is that they can max out the employer 403b @ 17K and 457b @ 17K. Correct?
Bigger question, can they also set up an individual (k) for the IC position and contribute to this plan?
Permalink Submitted by Alan Spross on Mon, 2012-04-02 22:13
Yes, the deferral limits for the 457 are in addition to those of the 403b.
The solo K can be established for the IC work matching contribution, but the elective deferral portion cannot be made because the 403b exhausted that limit. It is per taxpayer.
Permalink Submitted by Jason Widler on Mon, 2012-04-02 22:22
So 20% of IC income is 30K in addition to the 17K 403b deferral and 17K 457b in this case?