457b Govt and TE Plan in same year

Submitted by Nick Pappas on Thu, 2023-03-30 14:17

I have a client that maxed out a 457(b) govt and 457(b) under ERISA in the same year. Is that okay? Do each of the plans carry separate limits for a given year given that they are different plan types?

Thanks in advance



Submitted by William Tuttle on Fri, 2023-03-31 00:02

  • While governmental and non-governmental 457b plans are subject to specific provisions, features and requirements. They are both 457b plans subject to the single 457b limit aggregation across all 457b plans.
  • For a spot-on example under IRS regulations: 26 CFR § 1.457-4 – Annual deferrals, deferral limitations, and deferral agreements under eligible plans.
  • 1.457-4 Annual deferrals, deferral limitations, and deferral agreements under eligible plans. (e) Excess deferrals under an eligible plan – (5) Examples, Example 5.

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