Will participation in a defined benefit plan (pension/TRS) affect ones ability to contribute the maximum elective deferral limit to a 403(b) plan?
No. The elective deferral limit is a taxpayer limit, meaning that your maximum contribution to all plans cannot exceed the annual limit. However, your mandatory contribution to the state defined benefit plan is not considered an elective deferral, so it doesn’t reduce your annual limit. Therefore, you are able to participate in your state’s defined benefit plan and contribute the maximum allowable to your 403(b) plan.
Related Questions
- Will participation in a defined benefit plan (state pension plan such as CalSTRS in California or TRS in Texas) affect ones ability to contribute the maximum elective deferral limit to a 403(b) plan?
- Will participation in a defined benefit plan (pension/TRS) affect ones ability to contribute the maximum elective deferral limit to a 403(b) plan?
- How Does Participation In This Plan Affect My Ability To Contribute To An Individual Retirement Account ("IRA")?
