The Internal Revenue Service (IRS) released 457(b) contributions
limits for 457 plans such as NDC for Tax Year 2020.
Year
|
Regular
Contribution Limits
|
50+ Catch-Up*
Contribution
Limits
|
3-Year
Catch-Up**
Contribution Limits
|
2019
|
100% of compensation up to:
$19,000
|
For participants at least age 50 or turning 50 in 2019,
100% of compensation up to $25,000
|
The total of the regular
limit + missed contributions up to $38,000
|
2020
|
100% of compensation up to:
$19,500
|
For
participants at least age 50 or turning 50 in 2020,
100%
of compensation up to
$26,000
|
The total of the regular limit +
missed contributions up to
$39,000
|
*
The 50+ special catch-up available under Internal Revenue Code (IRC) Section
414(v) for individuals at least 50 years old in 2020 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.