IRS Contribution Limits

Understanding IRS contribution limits is important, especially when your goal is to help participants contribute the maximum to their account.

2020 Deferral Limits1

Standard Deferral $19,500
Age 50+ Catch-up $6,500
Special 457(b) Catch-up up to $39,000

2019 Deferral Limits1

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

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)
Standard Deferral $19,500 $750
Age 50+ Catch-up $26,000 $1,000
Special 457(b) Catch-up up to $39,000 up to $1,500

IRA

2019 and 2020 IRA Traditional/Roth Contribution Limits2

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

How much could be contributed?

Frequency Contribution Contribution (50+)
Weekly (52 contributions) $115 $135
Bi-weekly (26 contributions) $231 $269
Semi-monthly (24 contributions) $250 $292
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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