Benefits question

[IntheDraft6]

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I currently work for an independent group that contracts with the main hospital system in the area. I have been offered a half time position with the hospital system. I max out my retirement contributions with my group. The hospital also offers a retirement plan in the form of a 403(b). Would I be able to contribute to both plans and max them out or is the annual limit applied across all accounts.
Thanks.

 

[thesauce]

I currently work for an independent group that contracts with the main hospital system in the area. I have been offered a half time position with the hospital system. I max out my retirement contributions with my group. The hospital also offers a retirement plan in the form of a 403(b). Would I be able to contribute to both plans and max them out or is the annual limit applied across all accounts.
Thanks.

The annual limit of 17.5k is across all accounts

 

[IntheDraft6]

That's what I thought, thanks.

 

[The White Coat Investor]

I currently work for an independent group that contracts with the main hospital system in the area. I have been offered a half time position with the hospital system. I max out my retirement contributions with my group. The hospital also offers a retirement plan in the form of a 403(b). Would I be able to contribute to both plans and max them out or is the annual limit applied across all accounts.
Thanks.

The IRS limit is $17.5K total for employee contributions. The IRS limit is $52K per employer for employee + employer contributions. So if you have two different employers, you could theoretically get $104K into 401k/403b/profit-sharing type retirement plans. But it depends on whether you're self employed, what your employer offers etc.

So how much you can contribute depends on what your group and the hospital offers.

 

[thesauce]

The IRS limit is $17.5K total for employee contributions. The IRS limit is $52K per employer for employee + employer contributions. So if you have two different employers, you could theoretically get $104K into 401k/403b/profit-sharing type retirement plans. But it depends on whether you're self employed, what your employer offers etc.

So how much you can contribute depends on what your group and the hospital offers.

Aside from profit-sharing (which I've rarely seen offered), even if they matched everything up to $17.5k, how could you get up to the $52k max?

 

[krl7044]

I think that you are right - a plan at a hospital can rarely be maxed out. However, some practices might offer Cash Balance plans. In theory, one can contribute a lot given the right plan type(s) and design.

So if you have 10% profit sharing and are making $300k, you got another $30k, and with a 3% safe harbor match, then you've maxed out your plan.

 

[QofQuimica]

Aside from profit-sharing (which I've rarely seen offered), even if they matched everything up to $17.5k, how could you get up to the $52k max?

In my case (government/university employee), I can contribute an additional $17,500 pretax to a 457(b). That money, unfortunately, is not matched by the state or the university. However, with my mandatory 403(b) contribution (not counted toward the $17,500 403(b) limit), my voluntary 403(b) contributions (up to $17,500), my 403(b) match, and my 457 voluntary contributions, I will come fairly close to a yearly total of $52,000.

 

[thesauce]

In my case (government/university employee), I can contribute an additional $17,500 pretax to a 457(b). That money, unfortunately, is not matched by the state or the university. However, with my mandatory 403(b) contribution (not counted toward the $17,500 403(b) limit), my voluntary 403(b) contributions (up to $17,500), my 403(b) match, and my 457 voluntary contributions, I will come fairly close to a yearly total of $52,000.

Interesting. How much are the mandatory 403b contributions?

 

[QofQuimica]

Interesting. How much are the mandatory 403b contributions?

3% of my gross salary.

 

[IntheDraft6]

My group has a mandatory contribution that changes at a certain point during the year (starts at something like 6% and bumps up to something like 12%) plus we have a profit sharing plan so we can contribute up to $52k. I'm not sure what the hospital has to offer as I haven't gotten that far yet. I guess I'll talk to my accountant if things work out so I don't get in trouble.

 

[The White Coat Investor]

Aside from profit-sharing (which I've rarely seen offered), even if they matched everything up to $17.5k, how could you get up to the $52k max?

Most profit-sharing plans are run by groups owned by doctors, not hospitals. Not so uncommon once you move away from an employment model.