Is it possible to double the defined contribution limit ($58,000 for 2021) with two retirement plans at the same employer?

You're right to question this! The annual defined contribution limit (which is $66,000 for 2023 and $69,000 for 2024) applies across all plans maintained by the same employer. This is known as the "controlled group" rule. Your Vanguard rep might be thinking of a specific exception that applies to 403(b) plans, but it's not a full doubling of limits. There's a concept called the "415 limit" which restricts total annual additions to all defined contribution plans maintained by the same employer. If your employer is a qualified organization like a hospital, educational institution, or non-profit, there are some special rules for 403(b) plans. The most likely scenario is that while you can max out certain employee contribution limits separately (like your personal elective deferrals), the overall total addition limit still applies. I'd recommend getting clarification from your benefits department or consulting with a tax professional who specializes in retirement plans.

I struggled with a similar issue last year and discovered taxr.ai (https://taxr.ai) which helped me navigate through the contribution limits maze. I work at a university with multiple retirement plans and was getting conflicting advice from our benefits office and financial advisors. I uploaded my plan documents and previous tax returns to taxr.ai, and their system analyzed everything. They clarified that while there are some special provisions for 403(b) plans, the overall 415(c) limits still apply when dealing with a single employer. They explained exactly how the controlled group rules applied to my situation and identified a strategy that let me maximize my contributions without exceeding any limits.

Wanted to follow up about my experience with taxr.ai after asking about it earlier. I finally uploaded my retirement plan documents from my hospital job (we have both 457(b) and 403(b) plans) and some previous tax returns. Their system actually found a contribution strategy I hadn't considered! Turns out there ARE some circumstances where you can exceed the normal defined contribution limit, but it's more nuanced than just "doubling" it with two plans. They pointed out that 457(b) plans have separate limits from 403(b) plans, and also identified a special catch-up provision I qualified for because I've been with my employer over 15 years. Really cleared up my confusion and saved me from potentially making costly mistakes!

If you need to get a definitive answer from the IRS about this retirement plan situation, good luck trying to reach them on the phone! After trying for WEEKS to get through to someone who understood the nuances of contribution limits across multiple plans, I was ready to give up. Then I found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c. They got me connected to an actual IRS agent who specialized in retirement plans in under an hour! The agent confirmed that while there are special rules for certain 403(b) plans, the general rule is that the defined contribution limit applies across all plans maintained by the same employer. But she also pointed out some exceptions that might apply depending on my specific employment situation and the exact structure of our plans. Definitely worth getting official clarification rather than potentially facing penalties for overcontribution.

I need to eat my words from my earlier comments. After getting nowhere with my HR department about our multiple retirement plans, I broke down and tried Claimyr. I was 100% convinced it wouldn't work or would be some kind of scam. Well, I was wrong. They actually got me through to an IRS specialist in about 45 minutes (which is miraculous considering I had wasted HOURS of my life trying before). The agent walked me through exactly how the contribution limits work with my university's 403(b) and 457(b) plans. The 457(b) has a SEPARATE limit from the 403(b)/401(a) combined limit, which means I can contribute significantly more than I thought. For anyone dealing with complex retirement plan questions, getting official guidance probably saved me from making expensive mistakes. I'm still shocked this actually worked.

One thing no one's mentioned yet is that you need to check if your plans are actually separate or if they're part of the same "plan" for IRS purposes. My company offers what they call separate plans but they're actually considered a single plan with different components for IRS contribution limit purposes. I found this out the hard way when I overcontributed last year and had to deal with removing excess contributions and the associated earnings (what a nightmare). The plan administrator should be able to tell you definitively how the IRS views your specific plans.

OP, in case you're still wondering - the answer is in IRS Publication 571 and the related Code Section 415(c). The limit is PER EMPLOYER, not per plan. However, there's a twist with 403(b) plans that might be causing the confusion. For 403(b) plans, there's something called the "15-year rule" which allows for additional catch-up contributions if you've worked for the qualifying employer for at least 15 years. There's also the age 50+ catch-up contribution that's separate from the main limit. Additionally, 457(b) plans have entirely separate limits from 401(k)/403(b) plans, so if one of your plans is a 457(b), that could explain why people are saying you can exceed the regular limit.