IRS Contribution Limits

Understanding IRS contribution limits is important, especially when your goal is to contribute the maximum to your account. Even if you can’t do the max, consider increasing your contribution a little each year to potentially move closer to your retirement goals.

2014 Deferral Limits1

Standard Deferral $17,500
Age 50+ Catch-up $23,000
Special 457(b) Catch-up up to $35,000

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 should I contribute?

If your goal is to contribute the standard maximum deferral amount each year, you would need to contribute:

Pay frequency Contribution
Weekly (52 pays) $336
Bi-weekly (26 pays) $673
Semi-monthly (24 pays) $729
Monthly (12 pays) $1,458
Maximum deferral contribution examples

To stay up-to-date on any changes to the IRS deferral limits, visit the Retirement Plans Community on the IRS website.

Get the help you need

Talk with one of our Retirement Specialists for more information about planning for your retirement.


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