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Hi and welcome to Just Answer!You probably may not shelter the full amount - but certainly may contribute part of the salary into retirement plans - up to the limit.
The total limitation on deferrals for 403(b) and 457 plans is $16,500 fro 2011 and $17,000.for 2012.
If you already made contributions - these contributions should be considered.
If you are 50+ and if your plan allows - you may be able to make additional contributions. See here details for different plans - https://www.mysavingsatwork.com//atwork/1104818723638/1104818723680/1104904847325.htm Please be aware that there is a total limit for all contributions - your defered contribution and your employer's contributions - $49,000 in 2011 and $50,000 in 2012.
Let me know if you need any help.
I already knew all of this information. I'm sorry if my question was not clear. My fiancial advisor said taht it is the timing of the lumpsum payout that prevents me from being able to shelter it. It will be paid the first of the month following my last day on the job.
Why would this make a difference?
As long as you are paid wages - these wages are paid for services you provided - and are eligible for deferrals.
You may not defer wages after they already received - but if you are paid several days after your separation - that should not prevent you from making contributions UNLESS your plan specifically set some additional restrictions.
You may request and review plan documents to verify - but ther e is nothing in the law that prevents you from eligibility based on timing.