SEP-IRA /403(b)/ 457(b) Contribution Limits
I have a doctor client who is employed by a hospital as well as having his own side practice.
He maxed out his 2016 contributions of $24K in his 403(b) as well as $18K in his 457(b).
Separately, he made $300K on a 1099 in 2016 and also wants to contribute $53K to a SEP-IRA.
That would be total contributions of $95 to all his retirement plans.
Would he be over-funded in this scenario?
Permalink Submitted by Alan - IRA critic on Wed, 2017-08-16 23:23
Yes. There is a very odd rule that a 403b participant is treated as the employer with respect to the annual additions limit which applies per employer. Further, I do not believe that the catchup contribution made to the 403b counts toward the 53k annual additions limit. Accordingly, the 53k limit for the SEP should be reduced by only 18k for the 403b contribution leaving 35k available to contribute to the SEP IRA.