Saturday, June 7, 2008

Oh you temptress, TIAA-CREF

So I wrote previously about how I am trying to structure my contributions to cram as much money as possible into my retirement accounts this year. Well, TIAA-CREF just sent me a letter about this year's contribution limits for my 403(b).. and my 457(b). What what now?

Apparently I have BOTH a 403(b) and 457(b) set up for me through my work plan. I am not sure what a 457(b) is, but it appears to do the same thing that I am doing with my voluntary contributions to the 403(b). And my maximum limit on it is $14,740. Which means, total between the two, I could put away $30,240.

This has opened up whole new possibilities of cramming money into the account! I am tremendously excited. (Especially since I found out that you can only change your allocations once a quarter, and thus must plan more carefully.) So I think I will wait and see how things shake out in the next couple months as there may be some changes in my life going on, but I might be able to get a whole lot more money in there! (This would also save me a fortune in taxes, given how much self-employment income I have.) Very interesting...

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