Jump to content
Sign in to follow this  
Mike Glackin

457(b) Employer Contribution Vs. 401(a)

Recommended Posts

Why wouldn't a township/municipality just make an employer contribution to the 457(b) plan vs. setting up a 401(a) plan in conjunction with a 457 plan?




One possible reason: Contributions made by employer to your 457 plan will count against your annual maximum contribution limit. Contributions in a 401(a) are applied against your annual maximum contribution limit as prescribed by section 415, which generally applies towards 403bs/401ks, and allow for a certain amount of employer contributions without reducing your personal contribution limits.



Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Create New...