457 Contributions
To begin or change your contributions to your 457 plan you should contact your employer. Most 457 plans allow you to increase, decrease, stop and restart contributions as often as you wish, without fees or penalties. You may defer each year a maximum of 100% of your gross compensation* or an annual dollar limit, whichever is less. The dollar limits are:
| Year | Contribution Limit |
|---|---|
| 2009 | $16,500 |
| 2010 | $16,500 |
After 2010, contribution limits will increase in $500 increments to correspond with inflation rate increases (the limits will not necessarily increase every year).
* Your gross compensation must first be reduced by any mandatory pre-tax (“picked-up”) employee 401 plan contributions.
Catch-Up Provisions
The 457 plan offers two “Catch-Up” provisions which allow you to contribute over-and-above the normal annual contribution amount.
The normal (or “pre-retirement”) catch-up provision allows you to make additional contributions to make up for years in which you did not contribute the maximum that you were eligible to contribute under your current employer’s 457 plan.
The “Age 50” catch-up provision allows you to contribute an additional annual amount when you reach age 50 or older.
The maximum contributions for both provisions are shown below:
Normal (“Pre-Retirement”) Catch-Up
| Year | Contribution Limit |
|---|---|
| 2009 | $16,500 |
| 2010 | $16,500 |
After 2010, contribution limits will increase in $500 increments to correspond with inflation rate increases (the limits will not necessarily increase every year).
Over 50 Catch-Up
| Year | Catch-Up Limit |
|---|---|
| 2009 | $5,500 |
| 2010 | $5,500 |
After 2010, contribution limits will increase in $500 increments to correspond with inflation rate increases (the limits will not necessarily increase every year).
For more information on either of the catch-up provisions, please review the 457 Deferred Compensation Plan Catch-Up Provision Packet (160K) or call ICMA-RC Investor Services at 1-800-669-7400.