No. of Recommendations: 0
Greetings, Raffsfuture, and welcome. You asked:

<<I currently contribute to the maximam, $8,000, to my 457. I understand that if I open a 401k along with my 457 the maximam monthly amount I can contribute is $666 for both combined. If I cease contributing to my 457 in July and open a 401k in July can I contribute to the maximam of $833 to the 401k without penalty or restriction?>>

That has to be something unique with your employer. Legally, you may contribute to both a 457 plan and a 401k plan at the same time and make tax deferred to both up to the legal limits for both. This year that's $8K for the 457 plan and $10.5K to the 401k. Thus, your total is $18.5K to both. I did that for the better part of a decade.

You should check with your HR folks to see why the limit for just one is placed on you.

Print the post  


The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.