457(b) limit

[FJR]

Just a confirm. Client is non-gov, not for profit entity. Has 401(k) plan that the key ee maximizes by contributing the full 16K for 2004. Can they contribute another 13K in the 457(b)? I also assume no catch-up available in the (b)?

Thanks

[QDROphile]

See 457(e)(18). No section 414(v) catch up unless the employer is a government or instrumentality. But 457(b)(3) provides for a higher limit that some people refer to as a "catch up."

See 457© and compare it to the provisions of 457© before amendment to answer your first question.

[mbozek]

457(b) limt for 05 is 14k which is in addition to amts contributed under a 401k plan (18k if ee over 50). Contribution to 457b for 04 had to be made by 12/31/04.

[FJR]

How about the election was made to defer the $13,000, it just wasn't deposited yet.

[mbozek]

? the deferred comp is taken into account in the taxable year in which deferred. In other words the deferral must be taken from compensation by Dec 31st to count for the taxable yr. Its no different than deferrals to a 401k plan.

[Lori Friedman]

Just to clarify, nobody really "makes contributions to" a nongovernmental 457(b) plan. The arrangement isn't trusteed. Any deferred compensation amounts remain among the exempt organization employer's general assets.