Question regarding having multiple 403b

[MrFancy]

Hello folks,

 

I recently graduated from residency and moved to my new job. The residency and the current job are both in academic institution that offer 403b. I tried to put as much money as possible in 403b from the residency but was surprised to hear that I cannot put full $18000 in my new job's 403b because of prior contribution to former residency's 403b. In other words, since I contributed about 10K in the residency program's 403b, I would be only allowed to contribute 8K in my new job's 403b.

 

I always thought you can have multiple 403b, just like you can have multiple 401k as long as they are from different W2. What am I missing here? Any tips/links/explanation would be very helpful.

 

Thank you.

[Peds]

You can. But you only get 18k employee contribution per year to distribute. You can do employer for each however.

[DMFA]

$18,000 in *employee* contributions across *all* 403(b) *and* 401(k) *combined*.

[jfoxcpacfp]

@dmfa is correct. It is fortunate that you let your new employer know about your prior contribution. This is often overlooked and results in over-funding, which is a hassle and can even get the institution in trouble.

[Dreamgiver]

See if they have a 457b and max that out (especially if it is a governmental 457b). Otherwise backdoor Roth, HSA, taxable account.

[MrFancy]

thank you everyone for the responses!