401(k) limit

[Guest notapensiongeek]

Can an employee still contribute both $15,500 to a 401(k) plan and $15,500 to a 457 plan in 2008 or did PPA change that? What about in 2009? Where could I find the citation?

Thanks!

[J Simmons]

PPA did not change that. You may yet do so in 2008 and 2009.

To my knowledge, PPA does not expressly state that it did not change this. However, Larry/Sieve is a useful source of citations for negative propositions.

[Guest notapensiongeek]

Thanks John!

[Guest Sieve]

As an official negative proposition citation finder, look at IRC Section 402(g)(3), which does not include as elective deferrals--for purposes of the limitation in IRC Section 402(g)(1)(B)--any amounts deferred under a Section 457 plan. The IRC Section 457 elective deferral limitations are contained separately, in IRC Section 457(e)(15) (&, see also IRC Section 457(b)(2)).

Notice that the catch-up contribution very specifically is not aggregated with non-457 plans. (IRC Section 414(v)(2)(D).)

[J Simmons]

See, notapensiongeek, what'd I tell you about Larry? He can circle the wagons right around it. (By the way, Larry, this is one of the few times I've concocted a straight-up metaphor with out mixing them--oops, there I go again.)

[Guest Sieve]

By the way, I hate to admit it but, since I don't work with 457's, I wasn't aware of the double deferral limitation!