Menu

Multiple 457(b) plans?

Home Retirement Accounts Multiple 457(b) plans?

  • DMFA DMFA 
    Moderator
    Status: Physician
    Posts: 2126
    Joined: 06/24/2016

    I had this question come up on Facebook and I didn’t immediately know the answer.

    Someone who had two employed jobs who had a 457(b) at each job was wondering if they could max each one.

    Half of what I see on the IRS site only says that “a plan” has a $19,000 limit, not necessarily that all the individual’s 457(b) plans combined have that limit.  However, IRC §457(c) states “the maximum amount of the compensation of any one individual which may be deferred under subsection (a) during any taxable year shall not exceed the amount in effect under subsection (b)(2)(A) (as modified by any adjustment provided under subsection (b)(3)).” That leads me to think that the limit – §457(b)(2)(A), which refers to §457(e)(15)(A), which is equal to the §402(g) limit we all know is $19,000 for 2019 – is per individual and therefore combined across all 457(b) plans.

    Does anyone know something about this I don’t?  Uncommon occurrence, I know,

    "I like money." - Frito Pendejo (Idiocracy)

    [Not a financial professional (yet), lawyer, or employee of The White Coat Investor]

    #213702 Reply
    Liked by spiritrider
    Avatar spiritrider 
    Participant
    Status: Small Business Owner
    Posts: 1709
    Joined: 02/01/2016

    That leads me to think that the limit – §457(b)(2)(A), which refers to §457(e)(15)(A), which is equal to the §402(g) limit we all know is $19,000 for 2019 – is per individual and therefore combined across all 457(b) plans.

    Click to expand…

    Your analysis is 100% correct. The limit is across all 457b plans combined.

     

    #213736 Reply

Reply To: Multiple 457(b) plans?

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

Notifications Mark all as read  |  Clear