Henry Hobbs, age 51, has compensation of $72,000. The normal retirement age for his 457 (b) plan is age 62. Henry has unused deferrals totaling $21,000 as of January 1, 2019. How much can Henry defer into his 457 (b) public plan for 2019?

Henry's maximum amount defer in public plan is = $25000.

Explanation:

given data

age = 51

compensation = $72,000

normal retirement age = 62

unused deferrals totaling = $21,000

to find out

How much can Henry defer into his 457 (b) public plan for 2019

solution

we know that as per plan 457 (b) is an Employer sponsored

and tax favored retirement savings account

so here in 2019 Employees can contribute = upto $19000

and

Employees over age = 50

he can contribute additional = $6000

and making maximum contribution limit = $25000

so here

Henry's maximum amount defer in public plan is = $25000