I am 50 years old and can retire at 53, since I've completed my 25 years of service at that time. I am taking advantage of the Special 457(b) catch-up contribution program, which allows a participant for 3 years prior to the normal retirement age to contribute the lesser of:
the elective deferral limit ($23,000 in 2024; $22,500 in 2023; $20,500 in 2022; $19,500 in 2020 and in 2021) or the basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions).
I am contributing $46,000 this year, and then what ever double the deferral limit is for the next 2 years. My entire 457b account is pre-taxed with a balance of 523K. I do not have any Roth exposure. My thought process was since I'm doubling the limit, I should try to get a head start on trying to save on taxes now before retirement.
The way I'm thinking about it is since I would normally only be contributing 23k + the 50 year old catch up ($7500) for a total of $30,500, why not take advantage of the difference between the 46k and $30,500 ($15,500) in taxes now.
Am I allowed while I'm still employed to rollover $15,500 from my 457b to either a Roth Ira or the Roth option in my 457b retirement plan? I understand it will be included as income, however, that is being offset by my 46k pre-tax contribution, correct?
the elective deferral limit ($23,000 in 2024; $22,500 in 2023; $20,500 in 2022; $19,500 in 2020 and in 2021) or the basic annual limit plus the amount of the basic limit not used in prior years (only allowed if not using age 50 or over catch-up contributions).
I am contributing $46,000 this year, and then what ever double the deferral limit is for the next 2 years. My entire 457b account is pre-taxed with a balance of 523K. I do not have any Roth exposure. My thought process was since I'm doubling the limit, I should try to get a head start on trying to save on taxes now before retirement.
The way I'm thinking about it is since I would normally only be contributing 23k + the 50 year old catch up ($7500) for a total of $30,500, why not take advantage of the difference between the 46k and $30,500 ($15,500) in taxes now.
Am I allowed while I'm still employed to rollover $15,500 from my 457b to either a Roth Ira or the Roth option in my 457b retirement plan? I understand it will be included as income, however, that is being offset by my 46k pre-tax contribution, correct?
Statistics: Posted by gtt561 — Sat Mar 30, 2024 8:41 am — Replies 5 — Views 218