Q: I am a retired educator and have been asked to take a job for a year. I know I can collect both my retirement and my salary. My question is can I still put money in a 403b and a 457. If so how much to each?
A: Firstly, thanks for your question. This is actually a great question and a good opportunity for you to save a lot of money in both retirement plans. Investing in a 403b plus a 457 plan is the only combination of employer offered plans in which you are allowed to contribute to both. Assuming you are over the age of 50, you are allowed a normal contribution of $17,000 and a catch up contribution of $5,500 for a total of $22,500. This applies for both the 403b and the 457 plan so if you wanted to contribute the max to both plans you could save $45,000 in the year 2012.