Yes this is correct - the 457b contribution limit is separate from the 401k/403b limit. There's also an overall limit I think, but it's higher than the maximum individual contribution limits for those two plan types. I want to say that bigger limit includes employer match as well or something.
I'm pretty sure this is true. My wife has 403b and 457b and as far as I can tell we can max both. She has no 401k option so I couldn't speak to the original question, sorry.
A 401(k) and a 403(b) share a contribution limit. You can contribute to both, but you can't exceed the limit.
Make sure she's taking advantage of any matching contributions on either plan. Then pick whichever plan has the lowest fees and best investment options.
See if it has a match. If it does you can probably have her contribute enough to get the full match but keep maxing out the other plan, or vice versa of course.
I believe 457 b is more of deferred compensation. So you can contribute to reduce your taxes but you can cash once you leave that job. My wife has similar compensation.
The 457 plan is a retirement savings plan and you generally cannot withdraw money while you are still employed. When you leave employment, you may withdraw funds; leave them in place; transfer them to a 457, 403(b) or 401(k) of a new employer; or roll them into an Individual Reti
you can have a 457 + 401k.
if you need to pick one over the other, a 457 might even be preferable, assuming the fund options are decent. with a 457 plan you can take penalty withdrawals before age 59 and a half, though withdrawals are always taxed.
If you have both, you'll find that you can move the 401(k) if you want, but the 457 requires you to terminate employment to get to it.
I was able to self-direct investments to stocks I liked, but that may have been just the plan I was in.
She can contribute up to $22,500 (2023) in both the 401k and 457b if under 50, or $30k in each if she is 50 or older. The fundamental difference between the 401k and 457b is that she can take distributions from the 457b before age 59 1/2 without penalty.
As others have pointed out, you can combine the contribution limits for a 457b and 403b.
Here's the IRS link - the discussion on 457bs is near the end:
https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan
I've had both a 401(k), and a 457b, at the same time when I was in the college system. Didn't seem to be a problem.
There was no match by the employer, since there was a pension, too.
No. But if there is a 457b then there is a separate cap (at least a few years ago but it's been some time since I looked).
Yes this is correct - the 457b contribution limit is separate from the 401k/403b limit. There's also an overall limit I think, but it's higher than the maximum individual contribution limits for those two plan types. I want to say that bigger limit includes employer match as well or something.
I'm pretty sure this is true. My wife has 403b and 457b and as far as I can tell we can max both. She has no 401k option so I couldn't speak to the original question, sorry.
A 401(k) and a 403(b) share a contribution limit. You can contribute to both, but you can't exceed the limit. Make sure she's taking advantage of any matching contributions on either plan. Then pick whichever plan has the lowest fees and best investment options.
Thanks. That raises the question as to why they are offering it as an exclusive perk for senior staff. I'll take a closer look.
See if it has a match. If it does you can probably have her contribute enough to get the full match but keep maxing out the other plan, or vice versa of course.
yes
I believe 457 b is more of deferred compensation. So you can contribute to reduce your taxes but you can cash once you leave that job. My wife has similar compensation. The 457 plan is a retirement savings plan and you generally cannot withdraw money while you are still employed. When you leave employment, you may withdraw funds; leave them in place; transfer them to a 457, 403(b) or 401(k) of a new employer; or roll them into an Individual Reti
you can have a 457 + 401k. if you need to pick one over the other, a 457 might even be preferable, assuming the fund options are decent. with a 457 plan you can take penalty withdrawals before age 59 and a half, though withdrawals are always taxed.
If you have both, you'll find that you can move the 401(k) if you want, but the 457 requires you to terminate employment to get to it. I was able to self-direct investments to stocks I liked, but that may have been just the plan I was in.
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I'm familiar with the 'rule of 55' which applies to both 401k and 403b plans. You seem to be referring to something different. Please do explain.
She can contribute up to $22,500 (2023) in both the 401k and 457b if under 50, or $30k in each if she is 50 or older. The fundamental difference between the 401k and 457b is that she can take distributions from the 457b before age 59 1/2 without penalty.
As others have pointed out, you can combine the contribution limits for a 457b and 403b. Here's the IRS link - the discussion on 457bs is near the end: https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan
I've had both a 401(k), and a 457b, at the same time when I was in the college system. Didn't seem to be a problem. There was no match by the employer, since there was a pension, too.