Contribution and Catch-Up Limits

The Internal Revenue Service (IRS) released 457(b) contributions limits for 457 plans such as NDC for Tax Year 2016.

 Year

 Regular
Contribution Limits

 50+ Catch-Up*
Contribution Limits

 3-Year Catch-Up**
Contribution Limits

 2016

100% of compensation up to: $18,000

For participants at least age 50 or turning 50 in 2015,

 100% of compensation up to $24,000

The total of the regular limit + missed contributions up to $36,000

2017

100% of compensation up to:

$18,000

For participants at least age 50 or turning 50 in 2016,

100% of compensation up to

$24,000

The total of the regular limit +

missed contributions up to

$36,000

* The 50+ special catch-up available under Internal Revenue Code (IRC) Section 414(v) for individuals at least 50 years old in 2016 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.