457 deferral limit
Are there multiple deferral limits for a gov’t and non profit 457 plan
During 2015, a client worked for a hospital and deferred approximately $10,000 into the 457(b) plan (non-governmental).
The client took a new job and deferred an additional $18,000 into gov’t 457(b) plan
Does the 457 deferral limit apply to all 457(b) plans regardless if it is a non-governmental or governmental plan?
Does each plan type have a separate deferral limit?
Permalink Submitted by Alan - IRA critic on Mon, 2016-06-13 22:22
I believe that all 457 plans are aggregated, whether govt or non govt, with respect to the elective deferral limit. In other words, these two plans would be subject to the limit in the same manner as an employee with both a 401k and 403b plan in which they are participating. Therefore, the client now has an excess elective deferral for 2015 of 10,000.