Clarification on 457(b) Contribution Limits

Tree
Tree Member Posts: 3 Newcomer
edited December 2024 in General

I have access to two 457(b) plans and understand that the maximum contribution limit for one plan is $23,000.

Could you please clarify whether this limit applies separately to each plan, allowing me to contribute a total of $46,000 across both, or if the $23,000 limit is shared between the two plans?

Thank you for your assistance!

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Comments

  • LaurenS
    LaurenS FreeTaxUSA Agent Posts: 10
    edited May 7

    Hi Tree, thank you for your question! The $23,000 contribution limit applies per individual not per 457b plans. This means that your total contribution limit between the two plans is $23,000 not $46,000.

  • JulieO
    JulieO FreeTaxUSA Agent Posts: 7

    Hi Tree,

    Thanks for the question.

    The $23,000 limit applies to all accounts combined, not separately. You cannot contribute $23,000 to each.

    https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-457b-contribution-limits

  • LynR
    LynR FreeTaxUSA Agent Posts: 11

    Hello! Thanks for attending our live event today.

    The $23,000 contribution limit applies to all plans. Meaning total combined plan limit is 23,000. You cannot contribute $23,000 to each plan.

    https://www.irs.gov/retirement-plans/how-much-salary-can-you-defer-if-youre-eligible-for-more-than-one-retirement-plan

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