Quit Like a Millionaire: No Gimmicks, Luck, or Trust Fund Required

by Kristy Shen

Loophole Alert #1: Double-Contributing to Your Retirement Accounts Depending on how your company is structured, it may be possible to qualify for two employer-sponsored retirement accounts. For example, if your employer is both a nonprofit and is paid by state funds, you could qualify for both a 403(b) and a 457. Hospitals tend to be both; universities, too. Government contractors, including lawyers, architects, and defense workers, can also double-qualify, depending on how their businesses are structured. Amazingly, the contribution limits stack up, meaning you’d be able to tax-defer $19,000 in the 403(b) and $19,000 in the 457, for a total $38,000 deduction! And if you’re fifty or above, the extra $6,000 you can contribute also stacks up, for a total of $50,000! Here’s the sneaky part: this is almost never openly advertised to the employees. If you suspect you may be eligible, go to your HR department and ask point-blank whether you qualify to open up another retirement account. Many of our readers have been surprised to find out they could double their contributions!