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 Limits1

Standard Deferral $19,000
Age 50+ Catch-up $6,000
Special 457(b) Catch-up up to $38,000

2018 Deferral Limits1

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

IRA

2019 IRA Traditional/Roth Contribution Limits2

Standard Deferral $6,000
Age 50+ Catch-up $7,000

2018 IRA Traditional/Roth Contribution Limits2

Standard Deferral $5,500
Age 50+ Catch-up $6,500


How much should I contribute?

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

Frequency Contribution Contribution (50+)
Weekly (52 contributions) $115 $134
Bi-weekly (26 contributions) $230 $269
Semi-monthly (24 contributions) $250 $291
Monthly (12 contributions) $500 $583
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.




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