Can max out contributions on a TSP and a 403B from different employers at the same time?

Submitted by Dwayne Adams on Thu, 2020-09-24 15:27

I have a client who claims they are maxing out their TSP with one employer and a 403B with another employer at the same time. Someone told me this was allowable and someone told me it isn’t. Our broker-dealer is not very helpful.

I think that you can max out contributions on a 457 and 403B at the same time but I am not sure about a TSP and a 403B.
Also, does the $57,000 come in to play?

Let me know if you need additional information.

Thank you in advance,
Dwayne



Submitted by David Mertz on Thu, 2020-09-24 18:43

  • The TSP is governed by 401(k) rules in this regard.  Generally, no, one is not permitted to max out both.  See the following IRS web page on the subject:
  • https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-403b-contribution-limits
  • The regular and age-50 catch-up limits apply to the elective deferrals or Roth contributions to the TSP and 403(b) plan combined; making these contributions to one plan reduces the amount that can be contributed by the employee to the other.  However, there is potentially a special 15-year service catch-up which applies only to the 403(b) which would allow an additional amount to be contributed to the 403(b).
  • The $57,000 limit is a per-plan limit, not a per-individual limit, so employer contributions are not limited by what the employee contributes to a different plan.

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