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Richard

Is The Federal Govt Tsp A 457 Plan

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Well I know that technically it is probably not a 401(k), 403(b) or 457(b), but if one leaves the federal govt part way through the year and joins an employer with a 401, may one contribute the maximum to the TSP and the maximum to the 401?

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Well the limits are the same for both 401s and 457s so my previous googling did not give any indication as to which applied. However, I have had a chance to loook through the IRS code, and the answer is in S7701, where paragraph (f) provides:

 

 

(j) Tax treatment of Federal Thrift Savings Fund

(1) In general

For purposes of this title—

(A) the Thrift Savings Fund shall be treated as a trust described in section 401 (a) which is exempt from

taxation under section 501 (a);

(B) any contribution to, or distribution from, the Thrift Savings Fund shall be treated in the same manner as

contributions to or distributions from such a trust; and

 

 

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