What are the current contribution limits for 457(b) plans?
For , the employee basic contribution limit is $22,500 (or 100% of includible compensation, if less).
Plan sponsors also have the option of permitting “catch-up” contributions (i.e., it is not required that plan sponsors permit “catch-up” contributions). 457(b) plans may permit participants who are within three years of reaching the plan’s normal retirement age to make “final three-year” catch-up contributions. Under the final three-year catch-up, a participant who has an “underutilized limit” may be able to contribute an additional amount not to exceed the 457(b) basic employee contribution limit for that year. A participant must have an underutilized limit to be eligible for the final three-year catch-up option.
In addition, governmental 457(b) plans may permit age 50+ catch-up contributions; the current limit for age 50+ catch-up contributions is $7,500.
The basic 457(b) contribution and (if applicable) the catch-up contribution limits above apply regardless of whether contributions are made by employees, employers, or both. However, these contributions limits are not offset by contributions to other pre-tax retirement plans (e.g., a 403(b) plan) in which an employee participates.
Salary Reduction Forms
