35K maximum retirement contribution a year for a person?

[anonforthis]

According to my account rep, I can do 17.5K a year for 401K and 17.5K a year for 457. I have always thought the maximum pretax contribution per person is 17.5K a year. Sounds too good to be true. Was he right?

[runner9]

http://www.irs.gov/Retirement-Plans/How ... nt-Plan%3F

Google says that's correct, the 457 is treated separately while 401k, 403b and SIMPLE are all combined.

[bcjb]

Yes, that's correct.

[anonforthis]

Wow, so that means I will pay very little in taxes if any since I only make 42K. Because after pension, health insurance and other stuff nothing left to tax.

[denovo]

Wow, so that means I will pay very little in taxes if any since I only make 42K. Because after pension, health insurance and other stuff nothing left to tax.

You have no living expenses???????????

[letsgobobby]

Are either of your plans available in a Roth version? That may be preferable if your taxable income is below 5 figures.

[Sidney]

Wow, so that means I will pay very little in taxes if any since I only make 42K. Because after pension, health insurance and other stuff nothing left to tax.

You have no living expenses???????????

Taxable accounts maybe. I put away 90% of my pre-tax during my part-time years prior to full retirement.

[anonforthis]

Wow, so that means I will pay very little in taxes if any since I only make 42K. Because after pension, health insurance and other stuff nothing left to tax.

You have no living expenses???????????

My rule of thumb is always max out everything. My husband is also max out his. Whatever left, we live on it even if means we have to do beans and rice every day.

[Epsilon Delta]

My rule of thumb is always max out everything. My husband is also max out his. Whatever left, we live on it even if means we have to do beans and rice every day.

My rule of thumb is never to let congress decide how I should allocate my money.

[denovo]

Wow, so that means I will pay very little in taxes if any since I only make 42K. Because after pension, health insurance and other stuff nothing left to tax.

You have no living expenses???????????

My rule of thumb is always max out everything. My husband is also max out his. Whatever left, we live on it even if means we have to do beans and rice every day.

I am assuming your husband makes way more!

[sscritic]

I am assuming your husband makes way more!

Enough more for rice and beans, anyway.

[runner9]

And get ready to pay a good bit of taxes when you turn 70.5

[DonCamillo]

And get ready to pay a good bit of taxes when you turn 70.5

Either that, or continue working. I cross that boundary next year. Don't have to withdraw from my plans because I am still working, avoiding taxes by contributing 5% pretax to a 401a (employer contributes 8%) plus $23K pretax to 403b plus 23k pretax to 457b. In addition, I put another $13k in a Roth and a spousal Roth.

But when I stop working, the RMD will be substantial.

[Sidney]

But when I stop working, the RMD will be substantial.

Unless you stop early and convert out to ROTH for a while.

[22twain]

You have no living expenses???????????

Taxable accounts maybe. I put away 90% of my pre-tax during my part-time years prior to full retirement.

Same here. Most of my paycheck last year went into my 403(b) and the rest ended up in my Roth IRA. My living expenses came out of my taxable accounts.

[Coiled_Snake]

It is a requirement to be a high income earner to contribute to our 457. That means more than the figure you stated. But it could be different for you. Good luck.

[fposte]

You might be able to put even more than that away annually when you get older--I'm eligible for both a 403b and a governmental 457b, plus the catch-up and over 50 bumps, to the tune of $49k (if I timed it right, I could actually take it up to $52k). Which is good since I'm trying to make up for lost time.