As part of a 457(b) plan, participants can contribute more than the standard annual limit once they reach a certain age. There are two types of “catch-up” contributions: Age 50 Catch-Up provision and Pre-Retirement Catch-Up provision.

The Age 50 Catch-Up Provision for 457(b) Plans

From age 50, you can begin making additional contributions greater than the annual limit for your 457(b) plan.

Participants may be eligible for pre-retirement catch-up contributions, potentially up to twice the IRS limit for the year, provided certain criteria are met.

Participants aged 60, 61, 62 and 63 can contribute an additional amount on top of the standard contribution limit (separate from the Age 50 Catch-Up limit).*

See the catch-up limits for this year.

The Pre-Retirement Catch-Up Provision for 457(b) Plans

The Pre-Retirement Catch-Up provision, also known as the special 457(b) catch-up, is used in the three years before your declared normal retirement age. It allows you to make additional contributions to your 457(b) plan to make up for years in which you didn’t contribute the maximum possible amount to your current plan. The amount you can contribute under this provision depends on the deferrals you previously did not make to your current employer’s plan. The total amount you can contribute can be up to twice the annual limit for the year in which you are making the additional contribution.

If you already have a MissionSquare plan and would like more information on maximum contribution limits for previous years, along with a worksheet to calculate catch-up contributions, visit your Plan Resource Site to access page 2 of MissionSquare’s Pre-Retirement Catch-Up form.

Example of a 457(b) Pre-Retirement Catch-Up

A participant declared age 70 — their age in the year 2027 — as their normal retirement age. The participant is eligible to make catch-up contributions during the three years immediately preceding the year he reaches his NRA: 2024, 2025, and 2026.

Maximum Regular Contribution (2024-2026)
$70,500 = ($23,000 + $23,500 + $24,000)

Maximum Pre-Retirement Catch-Up Contribution (2024-2026)
$70,500 = ($23,000 + $23,500 + $24,000)

Maximum Total Contribution (2024-2026)
$141,000 = [$70,500 (regular) + $70,500 (catch-up)]

In order to make the maximum catch-up contribution of $70,500, the participant must complete the Unused Deferral Worksheet and show that he has at least $70,500 of unused deferrals for years when he was eligible to participate in his current employer’s 457(b) plan.

• Even though the participant is eligible to make catch-up contributions totaling $70,500 from 2024-2026, they are not required to do so. The participant might make catch-up contributions in 2024, and then their circumstances change and they ends up not making any catch-up contributions in 2025 or 2026. If so, the participant would still be eligible to take advantage of the age 50 catch-up provision in future years, but they would not be eligible to make pre-retirement catch-up contributions to this employer’s plan at any point in the future.
• Even though the participant has declared age 70 as their NRA, they are not prohibited from retiring before (or after) the date when they attain age 70.

457(b) Plan Catch-Up Rules

You must stay within the limits set by the catch-up contribution provisions. Further, you can’t make both the Age 50 and the Pre-Retirement contributions in the same calendar year.

You should therefore consider which option allows you to make the most contributions in a given year. See the calculation sheet in the Pre-Retirement Catch-Up form.

How To Make 457(b) Catch-Up Deferrals

If you wish to make 457(b) catch-up deferrals, contact your plan sponsor to complete an online or hard copy form.

If you have additional questions about 457(b) catch-up deferrals, contact MissionSquare.