If you are enrolled in the Texa$averSM 401(k) / 457 Program
, we have some good news: the IRS recently raised the annual contribution limits for 2020. In 2020, you can contribute up to $19,500 or 99% of your eligible compensation, whichever is less. That’s a $500 boost from the 2019 contribution limit.
If you are age 50 or older during the 2020 calendar year, you can contribute an additional $6,500 in 2020 (up from $6,000 in 2019). This would make your maximum possible contribution $26,000.
Special 457 plan catch-up contribution amount
The special 457 plan catch-up contribution amount also increased for 2020. If you are within three years of normal retirement age, you can contribute up to a maximum of $39,000 to your 457 plan in 2020. The additional amount you may be able to contribute under the special 457 catch-up contribution will depend on the amount you were able to contribute in previous years but did not.
If you are eligible for both the age 50+ catch-up and special 457 catch-up, you may not take advantage of both in the same calendar year. For help determining if you are eligible for catch-up contributions, contact the Texa$aver program office at (800) 634-5091.