Author Topic: 457 & “iap” contribution limits?  (Read 482 times)

Murse

  • Bristles
  • ***
  • Posts: 492
457 & “iap” contribution limits?
« on: May 21, 2018, 07:24:23 PM »
Oregon state employee, when the state made the pension more reasonable they added an “Ian” account that everyone has to contribute 6% of their salary to. My union had previously negotiated for the state to contribute the 6% for us.

Well in 2019 the state will be giving us a 6.95% raise then requiring us to contribute the 6% to the plan... I am concerned about if the iap contributions count towards my 18.5k contribution limits on my 457?

CherryMoney

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: 457 & “iap” contribution limits?
« Reply #1 on: May 25, 2018, 03:41:44 PM »
Hi, I am also in Oregon. Those two accounts are separate. The IAP account is connected to your PERS account, while the 457 plan is an OSGP account. Even though they are both administered through the same office - they are not the same type of account. When you retire, you can combine them, but while employed, they are two separate types of accounts.
One is your pension (IAP counts as part of pension)
457 is an investment account.


not_a_trex

  • 5 O'Clock Shadow
  • *
  • Posts: 79
Re: 457 & “iap” contribution limits?
« Reply #2 on: May 25, 2018, 07:03:50 PM »
Even though they are both administered through the same office - they are not the same type of account. When you retire, you can combine them, but while employed, they are two separate types of accounts.
One is your pension (IAP counts as part of pension)
457 is an investment account.



The IAP isn't a pension. It's a deferred compensation plan created under section 457 of the tax code. See here.

Given that the IAP and 457 may be the same kind of account, it's not clear to me whether the 457 and the IAP affect each other. CherryMoney, is there some place in writing that say employee contributions to both won't clash with each other when it comes to contribution limits?

CherryMoney

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: 457 & “iap” contribution limits?
« Reply #3 on: May 25, 2018, 07:36:40 PM »
Well I do both and no big penalty has hit me yet.
Here's the info I was able to find with a quick google search.

http://www.oregon.gov/pers/MEM/Pages/What-is-the-IAP.aspx

https://voyamarketingzone.dmplocal.com/sites/3650/osgp_active_participants.html

Obviously I'm a public employee and not a tax professional so ymmv.

CherryMoney

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: 457 & “iap” contribution limits?
« Reply #4 on: May 25, 2018, 07:48:26 PM »
And with a little more googling, here you go, a document that names both.

https://www.oregonlegislature.gov/lfo/Documents/2016-7%20Employee%20Contributions%20to%20PERS.pdf

Enjoy.