A friend of mine (younger than 50 years) contributed USD 16'000 to her 457 account with Calpers in 2007 (her contributions were not cut off automatically). Does she need to ask the administrator to remove USD 500 before April 15th? If yes, does she have the option to transfer the excess to her Calpers 401k account (which did not max out)?
Thanks,
Ilja.
I believe the answer to the first question is yes, and the answer to the second question is no. This is a very specific question related to the California Public Employees Retirement System (CalPERS). Your friend needs to get advice from the administrators of both of those accounts.
Can't answer for CALPERS, but in our state (SC) public employees are allowed to contribute both to the State 457 and the State 401k (both run by state for those eligible for state plans). Can do max to each. Our plan automatically moves excess to the other plan. So ask CALPERS if she can move excess into the 401k. (IRS allows it, I suspect whether CALPERS allows this in their plan documents.)
-HW "Skip" Weldon Columbia, SC
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