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.

2020 Deferral Limits1

Normal Deferrals $19,500
Age Based Deferral (age 50 or older)
Traditional Catch-Up Deferrals* up to $39,000

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:

Pay frequency Contribution
Weekly (52 pays) $375
Bi-weekly (26 pays) $750
Semi-monthly (24 pays) $812.50
Monthly (12 pays) $1,625
Maximum deferral contribution examples

2019 Deferral Limits

Normal Deferrals $19,000
Age Based Deferral (age 50 or older) $6,000
Traditional Catch-Up Deferrals* up to $38,000

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.

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