4051 / Are the elective deferral limits for tax sheltered annuity plans coordinated with the limits applicable to IRC Section 457 plans?
For taxable years beginning after 2001, the rules requiring that the contribution limits under IRC Section 457 be coordinated with elective deferral limits are permanently repealed.1 Consequently, an individual who participates in a 403(b) and 457 plan conceivably could defer a total of $49,000 in 2026 ($24,500 in each plan), $47,000 in 2025 ($23,500 in each plan), $46,000 in 2024 ($23,000 in each plan), $45,000 in 2023 ($22,500 in each plan), $41,000 in 2022 ($20,500 in each plan), and $39,000 in 2020-2021 ($19,500 in each plan) ( Q 3584).2
1. IRC § 457(c).
2. IR-2013-86 (Oct. 31, 2013), IR-2014-99 (Oct. 23, 2014). See, e.g., Let. Rul. 200934012 (college president allowed to defer $15,500 each to a 403(b) plan and a 457(b) plan for calendar year 2008), Notice 2019-59, Notice 2020-79, Notice 2021-61, Notice 2022-55, Notice 2023-75.