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Can I Do Both 457 And 401(k) In Same Year?

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I recently started a job which offers 457(b) as well as 401(k). Am I legally allowed to do both in the same year? If so, what are the restrictions and limits on doing this?

 

thanks!

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I recently started a job which offers 457(b) as well as 401(k). Am I legally allowed to do both in the same year? If so, what are the restrictions and limits on doing this?

 

thanks!

Yes you may. The limits are independent of each other. $15.5K available for the 403b, and $15,5K for the 401k. (You can contribute more if you qualify for any catchup contributions)

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To echo what Vince wrote... The Economic Growth and Tax-Relief Reconciliation Act of 2001 (EGTRRA) repealed coordination of contributions between 457(b) plans and 403(b) plans [and 457(b) plans and 401(k) plans]. This means that employees with enough includable compensation can contribute the maximum elective deferral limit to both a 403(b) and a 457(b) [and a 457(b) and a 401(k)]. For 2008, this is $15,500 for a whopping total of $31,000. Participants eligible for catch-up provisions can include even more. Check with your employer and your vendor for more details. Note: Not all employers offer both a 457(b) plan and a 403(b) [or a 457(b) plan and a 401(k) plan], nor are they required to do so.

 

Dan Otter

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