My employer offers both 403(b) and elective 457(b) for qualified employees. I elected maximum deduction from my paycheck for both plans for 2007. The total deduction turns our $15,499.92 for 453(b) + $15,499.92 for 457(b) = $30,999.84 net. This amout is not included in the line 1 of W2. In box 12a of W2 they used code E to report 403(b) and, seperately, code G to report 457(b). Retirement Plan is checked in box 13.
I am looking at 2007 IRS 1040 now. The instructions for line 7 "Wages Salaries Tips etc." (6th bullet point) says, "... If the total amount you deferred for 2007 under all plans was more than $15,500, include the excess on line 7".
I am confused about "under all plans" here. Do I have to include $15,499.92? Then it will be taxed for the 457(b), which shouldn't be taxed until withdrawal. But they are not saying that the exemtion amount is $31,000 for contribution to both plans.
Am I missing something? I will greatly appreciate any help.