IRS rules permit you to use the catch-up that lets you contribute the greater amount.Įxplanation of cost of living adjustments: Annual deferral limit:Ĥ01(k)/403(b)/457 – The limit on elective deferrals (including Roth contributions) a participant may make during the calendar year. If you are eligible for both the Age 50 and older catch-up and the special election catch-up under your 457(b) plan, IRS rules do not allow you to use both in the same calendar year. *** This special election catch-up applies to employees participating in an eligible governmental 457(b) deferred compensation that have elected the special catch-up available in the three years prior to the year of normal retirement age. If you are a 403(b) participant who is eligible for both the 15 Years of Catch-Up and the Age 50+ Catch-Up in the same year, the Internal Revenue Code requires that you first contribute the maximum permitted under that year’s 15 Years of Service Catch-Up before contributing under the Age 50+ Catch-Up. The additional catch-up requires a calculation to determine the available amount. The additional catch-up cannot exceed cumulatively $15,000 over the lifetime of the 403(b) participant. ** The 15 years of service catch-up may apply to employees participating in a 403(b) tax deferred annuity who have had at least 15 years of service with an educational organization, hospital, home health agency, health and welfare service agency, church or convention or association of churches. ![]() ![]() If you participate in a 457(b) plan, the Age 50+ Catch-up is only available if the plan is sponsored by a governmental employer.
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