457 Deferred Compensation Contribution Limits for 2021
Posted 11/09/20 (Mon)
The Internal Revenue Service (IRS) did not change the annual deferral limits for 457 (b) plans (reference IRS news).
For 2021, the general annual contribution limit remains at $19,500. For members age 50 and older, the NDPERS plan does provide the opportunity for catch-up contributions as follows:
Age 50+ catch-up
Any employee who turns age 50 in 2021 is eligible to contribute an additional $6,500 into their NDPERS 457 Deferred Compensation Plan. The maximum contribution limit for these members is $26,000, which is the sum of the $19,500 plus an additional $6,500.
To take advantage of this, employees need to select the Age 50 or older: Annual Catch-up option in Part C of the Enrollment/Change (SFN 3803) and submit it to their HR/payroll department for processing with NDPERS.
- Special 3 year catch-up
Employees within three years of retirement can apply for the Special 3 year catch-up by submitting the 457 Catch-Up Worksheet (SFN 51501) to NDPERS. Your application will be reviewed by NDPERS, and you will be notified if you are eligible. The annual limits for the eligible members is $39,000. Please note you cannot do both the Age 50+ catch-up and the Special 3 year catch-up.
For more information on how to supplement your retirement savings, visit the NDPERS 457 Deferred Compensation on our website.