Maximizing Contributions to Multiple Employer Retirement Plans
Then Completing In-Service Withdrawals and Rollovers to Jumbo IRAs
The IRS allows you to contribute to multiple employer retirement plans. The IRS places an $18,000 annual limit ($24,000 if age 50 or over) on employee contributions (elective deferrals) cumulatively across 401(k)s and 403(b)s and the same limits cumulatively across 457(b)s. It also places a $53,000 limit ($59,000 if age 50 or over) on the combination of employee elective deferrals, employer contributions and employee after tax contributions. As along as the employers are unrelated and not a controlled group (a parent-subsidiary employer that owns 80% of another employer or a brother-sister employer with five or fewer owners with a controlling interest in another employer), the limits are per employer. You can have multiple employer retirement plans with $53,000 cumulative contribution limits and one with $59,000.
Create Jumbo IRAs with In-Service Withdrawals and Rollovers
After maximizing contributions, you can then complete a tax free in-service withdrawal and rollover of the after tax portion if under age 59 ½ to a Roth IRA , or Roth 401(k) and after tax contributions if age 59 ½ and over, if your employer offers this option. And you can complete a tax free in-service withdrawal and rollover of employer contributions to a Rollover IRA at any age, if the employer offers this option.
Fortunately, you can repeat this process every year. This chart summarizes the process.