Contributions to both 457(b) and Thrift Savings Plan

[Guest DanielCPA]

I have a client that works for a hospital and is eligible to contribute to their 457(b) plan, and he also works for a federal agency, and is eligible to contribute to the federal governments Thrift Savings Plan. It appears that he can contribute up to the $17,500 limit in both the 457(b) plan AND the Thrift Savings Plan, and is not limited to a single $17,500 between the two plans.

Is that correct? If someone has any definitive proof, please let me know where I can find it for file documentation.

[Lou S.]

The 457 limit was decoupled from the 402(g) limit (which covers 401k/403b) years ago. I think with EGTRRA but it's possible it was a later law.

[John Feldt ERPA CPC QPA]

Right, Before 2002, a 457(b) plan deferral limit is generally reduced see the old Regulation 1.457-2(e)(1). This reduction does not apply after 2001.