457 Plan Contribution Limits for 2013
Posted: October 31, 2012
The Internal Revenue Service (IRS) announced increased limits on the amounts participants may contribute to tax-deferred savings plans in 2013, such as the Commonwealth’s 457 Deferred Compensation Plan.
|Regular annual limit for participants younger than age 50||$17,500|
|Total including Age 50+ Catch-Up||$23,000|
|Total including Standard Catch-Up (not to exceed participant’s catch-up credit)||$35,000|
Standard Catch Up
During each of the three calendar years before normal retirement age, 457 Plan participants may contribute up to twice the regular IRS annual contribution limit or the regular annual limit plus the amount of their Standard Catch-Up credit, whichever is less. The Standard Catch-Up credit is the amount participants were eligible to contribute, but did not contribute in previous years. Participants can use the Standard Catch-Up worksheet 182kb to determine their credit amount or call toll free 1-VRS-DC-PLAN1 (1-877-327-5261) for assistance.
Age 50+ Catch-Up
Participants age 50 and older may contribute an additional amount over the regular IRS annual contribution limit to the 457 Plan. They cannot use the Age 50+ Catch-Up and the Standard Catch-Up in the same calendar year.
Military Leave Make-Up
Participants who leave their positions for military service will not be able to contribute to the 457 Plan, unless they continue to receive compensation from which contributions can be made. If they return to salaried or wage employment with an employer that offers the plan and meet the requirements of the Uniformed Services and Re-employment Rights Act of 1994 (USERRA), they may contribute the amount of deferrals they were unable to make during their period of military leave. If applicable, they also will receive the employer cash match on these make-up contributions.
Here is some guidance on how participants can change their 457 Plan deferrals:
Employees of CIPPS Reporting State Agencies
To increase your 457 Plan contribution effective the first pay period of 2013, log into your online account or call the Plan Information line at 1-VRS-DCPLAN1 (1-877-9327-3261) and make the change by 4 p.m. December 28.
Employees of Non-State Agencies and Decentralized State Colleges and Universities
Use the method your agency requires to make changes to 457 Plan contributions and make the change before December 28, or an earlier date if required by your employer’s payroll processes.