35K maximum retirement contribution a year for a person?

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anonforthis
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35K maximum retirement contribution a year for a person?

Post by 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?
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runner9
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Re: 35K maximum retirement contribution a year for a person?

Post by 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
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Re: 35K maximum retirement contribution a year for a person?

Post by bcjb »

Yes, that's correct.
Topic Author
anonforthis
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Re: 35K maximum retirement contribution a year for a person?

Post by 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
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Re: 35K maximum retirement contribution a year for a person?

Post by denovo »

anonforthis wrote: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???????????
"Don't trust everything you read on the Internet"- Abraham Lincoln
letsgobobby
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Re: 35K maximum retirement contribution a year for a person?

Post by letsgobobby »

Are either of your plans available in a Roth version? That may be preferable if your taxable income is below 5 figures.
Sidney
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Re: 35K maximum retirement contribution a year for a person?

Post by Sidney »

denovo wrote:
anonforthis wrote: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.
I always wanted to be a procrastinator.
Topic Author
anonforthis
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Re: 35K maximum retirement contribution a year for a person?

Post by anonforthis »

denovo wrote:
anonforthis wrote: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.
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Epsilon Delta
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Re: 35K maximum retirement contribution a year for a person?

Post by Epsilon Delta »

anonforthis wrote: 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. :twisted:
denovo
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Re: 35K maximum retirement contribution a year for a person?

Post by denovo »

anonforthis wrote:
denovo wrote:
anonforthis wrote: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!
"Don't trust everything you read on the Internet"- Abraham Lincoln
sscritic
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Re: 35K maximum retirement contribution a year for a person?

Post by sscritic »

denovo wrote: I am assuming your husband makes way more!
Enough more for rice and beans, anyway.
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runner9
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Re: 35K maximum retirement contribution a year for a person?

Post by runner9 »

And get ready to pay a good bit of taxes when you turn 70.5
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DonCamillo
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Re: 35K maximum retirement contribution a year for a person?

Post by DonCamillo »

runner9 wrote: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.
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Sidney
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Re: 35K maximum retirement contribution a year for a person?

Post by Sidney »

DonCamillo wrote:But when I stop working, the RMD will be substantial.
Unless you stop early and convert out to ROTH for a while.
I always wanted to be a procrastinator.
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22twain
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Re: 35K maximum retirement contribution a year for a person?

Post by 22twain »

Sidney wrote:
denovo wrote: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.
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Coiled_Snake
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Re: 35K maximum retirement contribution a year for a person?

Post by 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
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Re: 35K maximum retirement contribution a year for a person?

Post by 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.
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