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Contributing To A 457 And 403b Tsa

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Here is my question....:

 

Can a pastor max out his contribution limits into a 403b and 457 plan during the same calendar year? I know educators can.... How about the Pastor?

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Guest Sierra

Here is my question....:

 

Can a pastor max out his contribution limits into a 403b and 457 plan during the same calendar year? I know educators can.... How about the Pastor?

 

Yes!

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Here is my question....:

 

Can a pastor max out his contribution limits into a 403b and 457 plan during the same calendar year? I know educators can.... How about the Pastor?

 

Yes!

 

 

 

Ok.... How.... Thank you for saying yes... However, can you give me some more detail?

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For a 401(k) plan, the deferral limit is under section 402(g) - it is an individual limit. The 457(b) limit is also separate individual limit. The two code sections are not connected. This is unlike a 403(b) plan, the 403(b) deferrals are also subject to the 402(g) limit - the same limit as a 401(k) plan. Thus 403(b) deferrals and 401(k) deferrals are combined together and in total cannot exceed one single 402(g) limit for a calendar year.

 

Thus, ignoring all of the catch-up possibilities to make this easier, an employee eligible for a 457(b) plan can have an annual deferral under 457(b) of $15,500 in 2007; plus, if they are also eligible for a 401(k) plan, they could have a salary deferral under 402(g) in the 401(k) plan of another $15,500 - for a total of $31,000 for 2007.

 

Note: the 457(b) "annual deferral" includes all contributions to the 457(b) - all employee elective deferral plus any employer contributions - all add up and must not exceed the 457(b) limit in total.

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