IRS Contribution Limits
Understanding IRS contribution limits is important, especially when your goal is to help participants contribute the maximum to their account.
2020 Deferral Limits1
|Age 50+ Catch-up||$6,500|
|Special 457(b) Catch-up||up to $39,000|
2019 Deferral Limits1
|Age 50+ Catch-up||$6,000|
|Special 457(b) Catch-up||up to $38,000|
The Age 50+ Catch-up provision allows people over age 50 to contribute more to their deferred comp account.
The Special 457(b) Catch-up Provision is part of the Section 457(b) of the Internal Revenue Code, and was amended by the Pension Protection Act of 2006. Participants who have not contributed the maximum limit under IRS law in previous years may contribute an amount less than or equal to the maximum limit (essentially, up to double the maximum) in the three years prior to the individual’s normal retirement age.
How much can be contributed?
|Pre-tax amounts rounded
down to the nearest dollar.
per-pay (26 pays)
|Age 50+ Catch-up||$26,000||$1,000|
|Special 457(b) Catch-up||up to $39,000||up to $1,500|
2019 and 2020 IRA Traditional/Roth Contribution Limits2
|Age 50+ Catch-up||$7,000|
How much could be contributed?
|Weekly (52 contributions)||$115||$135|
|Bi-weekly (26 contributions)||$231||$269|
|Semi-monthly (24 contributions)||$250||$292|
|Monthly (12 contributions)||$500||$583|
|Maximum deferral contribution examples|
To stay up-to-date on any changes to the IRS deferral limits, visit the Retirement Plans Community on the IRS website.
1 Source: IRS.gov
2 Annual limit is the sum of both IRA Traditional and IRA Roth Contributions or your taxable compensation for the year, whichever is lower