contribution limits for 403(b) and 457(b) retirement plans

Factual Questions
1

I will probably be consulting a tax professional this week, but for the time being apocryphal opinion from anonymous voices on the internet will do.

Question: if an employer offers a 403(b) retirement plan AND a 457(b) retirement plan, can an employee contribute $17,000 of pre-tax earnings to each plan, for a total of $34,000 in pre-tax contributions in one calendar year?

Websites discussing 457(b) plans seem to say so, but then when I look at the IRS form 1040 instructions for line 7 (wages, salaries, tips), they seem to regard a total amount deferred to all plans beyond $17,000 as an “excess salary deferral,” with said excess to be included on line 7 of one’s tax return.

So what’s the deal?

2

Yes, you can contribute to both up to the maximum allowed for each plan, so $34,000 in your case. The 402g limit requires you aggregate any contributions made between 401k, 403b and most other plans, but not 457s.

Some other plans, like SEP IRAs, also get a similar exemption. Our retirement system is a confusing mess as you may have noticed.