I have several retirement plans—a defined benefit plan and a 457 plan through my employer, as well as a Roth IRA. Am I allowed to contribute to all of them, and how much can I contribute?
You can contribute to all of your plans. In general, participating in a defined benefit plan (such as a pension) doesn't affect how much you can save in a defined contribution plan, such as a 401(k) or 457, because those types of plans are subject to separate overall limits, says Stuart Ritter, a certified financial planner with T. Rowe Price.
Also, contributions to a 457 plan—a type of retirement-savings plan that is available to many public-sector employees—are subject to limits that are separate from the limits on 401(k)s, 403(b)s and IRAs. Some public school teachers, health care workers, and other nonprofit and public-sector employees have the opportunity to contribute the maximum $18,000 (or $24,000 if 50 or older anytime in 2015) to both a 457 and a 403(b) at work. See Doubling Retirement-Savings Plan Contributions for more information.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
You can also contribute the full $5,500 (or $6,500 if you're 50 or older) to a traditional IRA without affecting your other retirement-plan contribution limits, although participating in an employer-sponsored plan could affect your eligibility to take a tax deduction for the contributions to a traditional IRA (see the 2015 IRA deduction rules). You can make nondeductible contributions to a traditional IRA regardless of your income or other retirement plans.
Or you can contribute up to $5,500 ($6,500 if you're 50 or older) to a Roth IRA if your income in 2015 is less than $193,000 if married filing jointly (with the contribution amount starting to phase out for incomes over $183,000) or $131,000 for single filers (with the phaseout starting at $116,000), regardless of whether you participate in a retirement plan at work.
For more information about the coordination of plans, see the IRS's How Much Salary Can You Defer if You're Eligible for More than One Retirement Plan? See the IRS's Types of Retirement Plans page for the contribution limits for each type of plan.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Selling Your Haunted House? What You Have to Tell Buyers (and What You Don’t)You don’t need ghosts to spook buyers, sometimes a home’s past is enough. Here’s what sellers should know about disclosure laws, pricing and perception when a property has a haunted history.
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
IRS Names Its First CEO: But He’s Also Still Running Social SecurityTax News Will this new role make it difficult to address emerging issues like budget and staffing cuts and customer service concerns?
-
IRS Phasing Out Paper Checks: What Happens After September 30?Tax Changes Avoid delays when IRS tax refunds and Social Security paper checks are cut off. Here’s what to know.
-
Ask the Editor, September 12: Tax Questions on 529 Plan Rollovers to a Roth IRAAsk the Editor In this week's Ask the Editor Q&A, we answer four questions from readers on transferring 529 plan money to a Roth IRA.
-
Ask the Editor, August 29: Tax Questions on Estate and Gift TaxesAsk the Editor In this week's Ask the Editor Q&A, we answer questions from readers on estate and gift taxes.
-
Will You Get a ‘Surprise’ Tax Bill on Your Social Security Benefits in Retirement?Retirement Taxes Social Security benefit payments might land you in hot water when filing 2025 taxes — here are three reasons why.
-
Ask the Editor, August 8: Tax Questions on Roth IRA ConversionsAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on converting a traditional IRA to a Roth IRA.
-
Ask the Editor, July 4: Tax Questions on Inherited IRAsAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the rules on inheriting IRAs.
