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
|Age 50+ Catch-up||$5,500|
|Special 457(b) Catch-up||up to $35,000|
2015 Deferral Limits1
|Age 50+ Catch-up||$6,000|
|Special 457(b) Catch-up||up to $36,000|
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:
|Weekly (52 pays)||$346|
|Bi-weekly (26 pays)||$692|
|Semi-monthly (24 pays)||$750|
|Monthly (12 pays)||$1,500|
|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.
1 IRS Announces 2015 Pension Plan Limitations, Internal Revenue Service, IR-2014-99 (Oct. 23, 2014).