IRS Contribution Limits
Understanding the IRS annual contribution limit is important, especially when your goal is to contribute the maximum amount to your account. Even if you can not contribute the maximum amount, increasing your contribution a little each year can help you move closer to your retirement goals.
Please review the Plan Comparison Chart to help determine which plan is right for you.
2016 and 2017 Deferral Limits1
|Age Based Deferral (age 50 or older)
|Traditional Catch-Up Deferrals*||up to $36,000|
*Traditional Catch-Up Deferrals are only available in the 457(b) plan
The Age Based Deferral (age 50 or older) provision allows participants to defer an additional amount over the annual contribution limit in the year they attain age 50. This provision is available in both the 457(b) and 401(k) plans.
The Traditional Catch-Up Deferrals provision allows participants to contribute up to twice the annual contribution limit for a maximum of three consecutive tax years prior to the year of their normal retirement age. The Catch-up amount allowed is limited to the underutilized amount in the previous years while employed by the State and eligible to contribute to the 457(b) plan. This provision is only available in the 457(b) plan.
How much should I contribute?
If your goal is to contribute the maximum annual limit this year, you will need to contribute:
|Weekly (52 pays)||$346|
|Bi-weekly (26 pays)||$692|
|Semi-monthly (24 pays)||$750|
|Monthly (12 pays)||$1,500|
|Maximum deferral contribution examples|
To stay up-to-date on any changes to the IRS contribution limits, visit the Retirement Plans Community on the IRS website.
Get the help you need
Talk with one of our Retirement Specialists for more information about planning for your retirement.