457 Plan contribution limits
I have a client, age 60, that made a $37,700 contribution to a 457 plan and $753 contribution to a 401(k) with 2 employers in 2021. How is this possible? I thought the contributions limit was $26,000 with the catch-up.
I have a client, age 60, that made a $37,700 contribution to a 457 plan and $753 contribution to a 401(k) with 2 employers in 2021. How is this possible? I thought the contributions limit was $26,000 with the catch-up.
Permalink Submitted by David Mertz on Sat, 2022-03-19 13:00
The contribution limit for the 457(b) is separate from the contribution limit for the 401(k).
If permitted by the plan, a 457(b) allows special catch-up contributions (up to a maximum of $19,500 for 2021, depending on the amount of contributions for prior years).
https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan