I worked for a private institution with a non-governmental 457(b) plan for the first 6 months of the year. On July 1st I moved to a government institution with a governmental 457(b) plan. The 2024 contribution limit for 457(b) plans is $23,000. However, governmental 457(b) plans offer an age 50 catch up (and I am above 50) of an additional $7,500 for a total of $30,500 (but non-governmental plans do not).
I contributed $11,500 during the 6 months that I was in the non-governmental 457(b) plan.
My question: Can I now contribute $19,000 to the governmental 457(b) plan so that I reach the catch-up limit of $30,500?
I couldn't find anything that directly addresses my question, but I got some insights from this IRS page: https://www.irs.gov/retirement-plans/ho ... ement-plan
There they have an example of of a 50 year old who has two employers with 401k plans, and one can reach the catch up limit for the year "even if neither plan allows age-50 catch-up contributions".
Based on this, since one of my plans does offer the 457(b) catch up contribution, I think I should be able to contribute to the $30,500 limit for the year. Any thoughts? Thanks!
I contributed $11,500 during the 6 months that I was in the non-governmental 457(b) plan.
My question: Can I now contribute $19,000 to the governmental 457(b) plan so that I reach the catch-up limit of $30,500?
I couldn't find anything that directly addresses my question, but I got some insights from this IRS page: https://www.irs.gov/retirement-plans/ho ... ement-plan
There they have an example of of a 50 year old who has two employers with 401k plans, and one can reach the catch up limit for the year "even if neither plan allows age-50 catch-up contributions".
Based on this, since one of my plans does offer the 457(b) catch up contribution, I think I should be able to contribute to the $30,500 limit for the year. Any thoughts? Thanks!
Statistics: Posted by mudfud — Sat Aug 31, 2024 12:08 am — Replies 3 — Views 269