maximum contribution across ALL retirement plans 2017?

[MP]

Yes-that is correct. I do NOT have matching anywhere. This is the set up:

Work A.: w-2 employee 457, no match, no 403b available, there is also a pension (golden handcuffs)

Work B: w-2 (but get paid hourly, only thing covered is malpractice), NO match, they have a 403b and 457 but the plans are not very good at all- also not sure how long I will stay.

Work C: 1099, hence the solo 401K, I thought I could contribute a max of 36K because of the 54K limit that would include my 457 but if this is not the case then I could do 18K employee and 20% of money made after deducting expenses for the employer part?

[The White Coat Investor]

MP wrote:

Double checking:

Can I do 5.5 K in backdoor roth AND total of 54k across other retirement accounts:so:

5.5k backdoor Roth

PLUS

18K 457

solo 401K: 18 employee PLUS 18K employer

 

5.5+ 54=59.5K?

Click to expand...

If those are the accounts and you have enough income and you're under 50 then you could do $6K in the Backdoor Roth, $18.5K in the 457, and $55K in the individual 401(k) for 2018. I agree it's a pretty weird combination of accounts. Are you just ignoring the employer 403(b)? That might not be a good idea, especially if there is a match. And if there is, that could reduce how much you can put in the individual 401(k).

[MP]

Johanna and spiritrider thank you. For some reason I thought I read somewhere on WCI that the limit of 54K is about similarity of work and NOT ownership but I must have mis-read I guess. I will make around 150K of 1099 income(after deducting my expenses) so that would mean I could do in addition to the 18K part of my employee contribution 20% of the 150K for employer part?

[spiritrider]

Johanna is correct. The one-participant 401k plan will have it's own annual addition limit.

It is not the similarity of work that matters. What matters is ownership. Only if you had a significant majority ownership interest in the 457b employer would you have to include the 457b in a single annual addition limit.

[MP]

Yes-that is correct--I only have a 457 option with NO match at my employer(it is a County-so I guess gov.457 plan----there is a pension though). So I will do the 5.5K in my backdoor roth and then for my 1099 income I plan to do a total of 36K in my solo401k-18K employee and 18K employer-of which I am both.

I still think that the max across all accounts (roth IRA excluded) is 54K as both my w-2 and 1099 work is similar.

[jfoxcpacfp]

From an intellectual standpoint, you can. But, practically, I'm not so sure. Are you saying you work for an employer with a 457b only and no 403b or 401k? That is rather unusual.

To answer your specific question, though, and assuming you are < age 50, you can contribute:

• $5,500 to a personal IRA (including a backdoor Roth)


• $18k to an employer 457b, and


• $54k to the 401k of a separate employer (this is calculated at 20% of net profits as a sole proprietor/LLC or 25% of wages as an s-corp employee)

So that should be great news for you, as it's more than you had calculated.

If you happen to have a 403b at work, you would be limited to a total of $54k of employer + employee contributions across all employer accounts. The backdoor Roth is not affected.

Can you confirm that you have access to only the 457b at your job #1?

[MP]

Double checking:

Can I do 5.5 K in backdoor roth AND total of 54k across other retirement accounts:so:

5.5k backdoor Roth

PLUS

18K 457

solo 401K: 18 employee PLUS 18K employer

 

5.5+ 54=59.5K?