Contributing to multiple retirement plans

Please read this update from the IRS because we get this question from clients several times a year.

In the latest edition of Retirement News for Employers, the IRS reviews the amount of contributions and salary deferrals that can be made by an individual eligible for participation in multiple retirement plans. The types of plans that must be aggregated in calculating the individual limit for a calendar year are provided, as well as how to handle contributions made in excess of the annual limit. Examples are included that demonstrate the interaction of catch-up contributions (available to individuals age 50 or older by year-end) with the annual limits.