Thrifty saver! Can a new Federal employee with this years 457 contrib maxed to a previous State employee contrib to the Federal Thrift Plan (a 401k sort of not quite look alike?)!

[Guest StatetoFed]

Can a new Federal employee who has maxed contributions to his previous state employer through a 457 Deferred comp plan this year now contribute additionally in same tax year to the Federal Thriift Plan (a 401k look alike but technically 401(a) /501(a))?

I just moved from the State (of WA) to the Federal Gov. The Federal Thrift Savings Plan (TSP) says it is ""like" 401 (k) s" but actually references 401(a) and 501 (a) in it's not very up to date plan materials. I have contributed to this year's annual max (including >50 age catch up ) to my previous employer's DCP 457 plan. Can I now contribute to the max (it is a % and total max) to the Federal Thriift Savings Plan also? Even better can I use the Thriift Savings Plan's own age > 50 catch up too ?!

The literature on 457s does say that the accumulated maximums for the 457 " no longer affects maximums for 401(k)s" but does not mention the Fed Thrift Plan . Unfortunately the Federal Thrift Plan's materials which appear out of date just says that (Part 2 "Participating in the TSP and another Tax Deferred Retirement Plan" page 4) " ..relates to excess deferrals made to the TSP and other qualified employer plan as described under sections 401(K), 403(b), 408(k) , 501© (18) . It does not mention 457s. It then says that the elective deferral limit applies to the total of all contributions to these in the year....

The IRS, TSF web sites have not been helpful so far.

Thanks, I would be very grateful for advice, suggestions, resources .

[Guest TGeer]

The way I read the regulations, the two plans don't connect as to regular contributions. The statute and regs say contributions are limited by

[Guest TGeer]

The way I read the regulations, the two plans don't connect as to regular contributions.

The statute and regs say contributions are limited by 415 and 402(g). taking into account 414(v) catch-up.

Now, 415 is per employer, and so you start over.

402(g) is by employee, so you only get one bite out of the apple, taking into account qualified plans. 403(b)s, and other things; 457 participation has nothing to do with 402(g), so if your only state deferral was 457, you have a full 402(g).

Catch-up is a little more complex. If you use a 457 catch-up, you have no 414(v) regular catch-up. Essentially, the rules force you to pick one or the other. If you didn't make a 457 catch-up, which you might not have since it's only available within 3 years of normal retirement, feel free to use the 414(v) catch-up in FTSP.

However, I don't do FTSP work, so I strongly suggest you write up what you intend to do and ask them for concurrence or include it with your FTSP election and see what they do.