Announcement

Collapse
No announcement yet.

401a contribution limits

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 401a contribution limits

    I am currently employed at a state hospital with a 401a retirement plan for which there are set employee and employer contributions. I also have access to 403b and 457b accounts. If I am understanding things correctly, I am eligible for an 18k employee contribution to the 403b, an 18k employee contribution to the 457b, and my set employee and employer contribution to the 401a. Does that sound right? I couldn't information in the 401a plan document on if the employee contributions counted against the IRS limits for 401k/403b. Thanks

  • #2
    I have the same exact question. The HR people couldn't give me an answer either which is a poor prognostic sign. Sorry I am not much help. I am commenting to get updates by the more experienced and knowledgeable WCI community. Is this your first job out of training as well? Congrats!

    Comment


    • #3
      401a pre-tax employee contributions are picked-up by the employer and are considered mandatory contributions. They are not considered employee deferrals for purposes of the employee deferral limit (2017 = $18K and 2018 = $18.5K. The 403b employee deferral can be maxed out.

      A 457b plan is a non-qualified plan and has it's own contribution limit equal to, but not limited by the qualified plan employee deferral limit.

      Also, a 403b is considered controlled by the participant. As long as the participant is not a > 50% owner of a business, the 403b is not aggregated with the 401a for purposes of the annual addition limit (2017 = $54K and 2018 = $55K).

      The 401a mandatory employee contributions + employer contributions + employee after-tax contributions (if available) can be up to the annual addition limit. The 403b can be the full employee deferral limit. 457b contributions can also be up to the limit.

      Comment


      • #4
        Thanks for the helpful reply spiritrider! I appreciate all of the detail.

        ChristopherMD20: I'm currently still in training, but wife is working and we have no kids so more money is available for saving than for most residents.

        Comment

        Working...
        X