Contribute to a 457(b) governmental plan and solo 401k at the same time

QUESTION: Can I contribute to a 457(b) governmental plan and solo 401k at the same time?

ANSWER:  For those who are actively contributing to a 457b,  are also self employed and have opened a solo 401k, the annual contribution rules allow for contributions to both a 457b and a solo 401k. Therefore, you can maximize the contributions to each plan. For example, the maximum salary deferral contribution (also known as employee contribution) that may be made to a 457b in 2013 is $17,500, which is the same for a solo 401k plan. Therefore, if you have the income from both your full-time job and your self -employed business sponsoring the solo 401k to support the contributions, you could theoretically contribute $51,000 to the solo 401k plan (made up of profit sharing and employee contributions) and an additional $17,500 to the 457b plan for tax year 2013.

Thnx,

Nancy in FL