Contribution and Catch-Up Limits

The Internal Revenue Service (IRS) released 457(b) contributions limits for 457 plans such as NDC for Tax Year 2018.

Year	Regular Contribution Limits	50+ Catch-Up* Contribution Limits	3-Year Catch-Up** Contribution Limits
2017	100% of compensation up to: $18,000	For participants at least age 50 or turning 50 in 2017,  100% of compensation up to $24,000	The total of the regular limit + missed contributions up to $36,000
2018	100% of compensation up to:  $18,500	For participants at least age 50 or turning 50 in 2018, 100% of compensation up to $24,500	The total of the regular limit + missed contributions up to $37,000

* The 50+ special catch-up available under Internal Revenue Code (IRC) Section 414(v) for individuals at least 50 years old in 2018 and make eligible pre-tax contributions to 401(k), 403(b), and governmental 457 plans.

 

**The 3-Year special catch-up election for employees participating in an eligible 457 deferred compensation who have elected the special catch-up available in the three years prior to the year of normal retirement age. You must provide a copy of the investment recordkeeper calculation sheet to ensure eligibility.

 

NOTE: The participant in a governmental 457(b) plan may make catch-up contributions in a year equal to the greater of (a) the amount permitted under the age 50+ catch-up rule, OR (b) the amount permitted under the normal retirement age catch-up rule.