Advanced Underwriting Consultants

Question of the Day – April 20

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question: I have a highly compensated client who works for a government agency.  She participates in a thrift savings plan and a Section 403b plan.  What is the maximum amount that can be put in those plans in 2012?

Answer: Both those plans are considered to be defined contribution plans for the purpose of the tax code, so the limits must be coordinated.

The maximum combined elective deferrals that can be made to the 403b and TSP are $17,000 for 2012—or $22,000 if age 50 or older.  The maximum combined overall limit for combined employer and employee contributions to the 403b and TSP for 2012 is $50,000.

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.