1018. Do you have multiple retirement plans and are unsure how they fit together? Laura answers a listener’s question about having a 403(b) and a 457 plan at work, and a potential second job with a 401(a). Knowing the rules of various retirement plans helps you take full advantage of them and avoid potential mistakes and penalties.

Key takeaways

The names of workplace retirement plans come from the sections of the Internal Revenue Code that govern them.
Plans from different sections of the tax code operate independently, allowing you to double or triple-dip maximum contributions.
Plans from the same section of the tax code, such as a 401(k) and a 403(b), are subject to one shared annual contribution limit.
A 403(b) can be offered by public schools, hospitals, and non-profits; it allows an extra catch-up contribution for long-term employees.
A 457 plan has different types of accounts, but the governmental 457(b) is the most common. It allows an extra catch-up contribution and no early withdrawal penalties.
A 401(a) is typically offered by government agencies, schools, and non-profits. It usually has mandatory participation and a high annual contribution limit.

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