401(k), SEP and 457 plan coordination of benefits limits

[GregH]

This is a situation most envy. I cannot find authority limiting the benefits to each of these. 

Scenario: Individual over 50 yrs old was a participant in a 401(k) plan for part of the year and put $22,500 into Employer 1's 401(k) plan. Individual then changes jobs and now qualifies to contribute to a 457 plan with Employer 2. Individual plans on maxing out contribution to Employer 2's 457 plan with $24,500 for 2018. Individual has a side job of rehabbing houses via a single member LLC (with no employees) and earned $300,000 there. Individual want to max out and contribute $55,000.  

It appears that Individual can contribute the $22,500 to the 401(k), the $24,500 to the 457, and the full $55,000 to the SEP for a total deferral to the three plans of $102,000. I have never heard of circumstances similar to this and want to see if anyone has more insight into a provision limiting the deferrals for the three plans that I am missing. I have done extensive research and cannot find anything. This appears to be permissible. Thanks.

 

[ETA Consulting LLC]

Sure.  You basically have employment with three distinct Employers; each with their own limits.  Beyond that, the 457 plan is not combined with a 401(k) plan for the individual deferral limit either.  So, this would be perfectly legal.

Good Luck!