IRS Contribution Limits
Understanding IRS contribution limits is important, especially when your goal is to help participants contribute the maximum to their account.
2019 Deferral Limits
| Standard Deferral | $19,000 |
|---|---|
| Age 50+ Catch-up | $6,000 |
| Special 457(b) Catch-up | up to $38,000 |
2018 Deferral Limits
| Standard Deferral | $18,500 |
|---|---|
| Age 50+ Catch-up | $6,000 |
| Special 457(b) Catch-up | up to $37,000 |
The Age 50+ Catch-up provision allows people over age 50 to contribute more to their deferred comp account.
The Special 457(b) Catch-up Provision is part of the Section 457(b) of the Internal Revenue Code, and was amended by the Pension Protection Act of 2006. Participants who have not contributed the maximum limit under IRS law in previous years may contribute an amount less than or equal to the maximum limit (essentially, up to double the maximum) in the three years prior to the individual’s normal retirement age.
How much can be contributed?
| Pre-tax amounts rounded
down to the nearest dollar. |
Pre-tax
annual amount |
Pre-tax
per-pay (26 pays) |
Per-pay reduction
Assumes 25% tax rate |
|---|---|---|---|
| Standard Deferral | $19,000 | $730 | $548 |
| Age 50+ Catch-up | $25,000 | $961 | $721 |
| Special 457(b) Catch-up | up to $38,000 | up to $1,462 | up to $1,097 |
To stay up-to-date on any changes to the IRS deferral limits, visit the Retirement Plans Community on the IRS website.
1 Source: 401k contribution limit increases to $19K for 2019; IRA limit increases to $6K, IRS.gov (Nov. 1, 2018)