Yearly Retirement Deferral Limits

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Topic Author
YoungLion
Posts: 84
Joined: Wed Sep 05, 2007 10:16 am

Yearly Retirement Deferral Limits

Post by YoungLion » Fri Nov 15, 2019 2:38 pm

I am over 50. In 2019, I am saving $25K in a 403, $25K in a 457 and $7K in a Roth IRA for a total of $57K in those 403/457/Roth accounts.

A retirement "specialist" suggested that my 457, 403 and Roth IRA all count toward the $56K maximum 415 limit. I looked on the IRS site and, of course, on the Bogleheads site and I don't think this is right. Doesn't seem to be even close to right. Still, his comments have me a bit spooked. Maybe there was some sort of miscommunication between us or I am missing a subtlety in the tax law.

I want to max out retirement accounts as much as I can for another year or two, but don't want trouble. Am I exceeding the 415 limits?

Thanks in advance.

Katietsu
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Joined: Sun Sep 22, 2013 1:48 am

Re: Yearly Retirement Deferral Limits

Post by Katietsu » Fri Nov 15, 2019 2:49 pm

I take it that you work for a government entity?

Who is this “retirement specialist”? Who do they work for? There is no justification for that level of incompetence. I might be willing to give a little bit (but not much) of the benefit of doubt on the 403 and 457 since the current structure has only been in effect for about a decade as far as I know. But to include even the Roth leaves me speechless. Unless there is part of this scansion that I am misunderstanding, gross incompetence comes to mind.

Topic Author
YoungLion
Posts: 84
Joined: Wed Sep 05, 2007 10:16 am

Re: Yearly Retirement Deferral Limits

Post by YoungLion » Fri Nov 15, 2019 3:12 pm

Yes. I am giving the benefit of the doubt on this one. Maybe he thought 403(b) Roth contributions. To be honest I was embarrassed to even ask on this board because it seems so straight forward.

And, yes, government agency. I think 403 and 457 are considered separate, but even if not, I'd still be under.

ExitStageLeft
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Joined: Sat Jan 20, 2018 4:02 pm

Re: Yearly Retirement Deferral Limits

Post by ExitStageLeft » Fri Nov 15, 2019 5:06 pm

The specialist is in error on this one.

https://www.irs.gov/retirement-plans/ho ... ement-plan

If the 457(b) plan allows, there is the possibility of special catch-up provisions: https://www.irs.gov/retirement-plans/pl ... ion-limits

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willthrill81
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Location: USA

Re: Yearly Retirement Deferral Limits

Post by willthrill81 » Fri Nov 15, 2019 5:13 pm

403b, 457, and 'regular' IRA (i.e. not SIMPLE IRAs) contribution limits are completely separate from one another.

401k, 403, SIMPLE plans (e.g. SIMPLE IRA), and SARSEP plans have combined limits.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

Topic Author
YoungLion
Posts: 84
Joined: Wed Sep 05, 2007 10:16 am

Re: Yearly Retirement Deferral Limits

Post by YoungLion » Fri Nov 15, 2019 5:17 pm

Thanks everybody for your time. Very reassuring. Didn't seem right, but rattling at the time.

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