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June 15, 2026

Maximizing Contributions To Retirement and Deferred Compensation Plans Under Sections 403(b), 401(k), and 457: A Linear Programming Approach.

Key Points

To identify the maximum allowable contributions to retirement and deferred compensation plans using linear programming.
Applied a general linear programming model to various retirement plan combinations.
Utilized numerical examples to illustrate the approach.
Analyzed the complexities of IRS contribution limits across plans.
Linear programming effectively maximizes contributions within IRS limitations.
Demonstrated clear numerical examples showing significant increases in allowable contributions.
Highlighted the challenges employees face when accessing multiple retirement plans.

Abstract

Abstract The internal Revenue Code imposes complex, interrelated limitations on contributions to certain retirement and deferred compensation plans described in Sections 403(b), 401 (k), and 457. As a result, an employee may find it extremely difficult to determine the maximum allowable contribution to these plans, especially when he or she participates in more than one type of plan. This article demonstrates that linear programming provides an ideal methodology for maximizing contributions to various combinations of plans and applies the general linear programming model to specific numerical examples.

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