Update from CTA on 403(b)/457
2012 Annual Plan Contribution Limits Increase to $17,000 from $16,500 for 403(b) and 457 Plans
The IRS announced that 2012 annual elective deferral (contribution) limits for 403(b) or 457(b) plans will increase to $17,000 from $16,500, but the annual catch-up contribution amount for participants age 50 and older is unchanged at $5,500.
Contribution Limits for 2012
| Contribution Limit | Age 50 Catch-Up | Other Catch-Up Provisions | |
| 403(b) | $17,000 | $5,500 | 15-year rule* |
| 457 | $17,000 | $5,500 | 3-year provision** |
* Eligible employees with 15 or more years of full-time service may be able to contribute up to $3,000 more for five years, or a maximum of $15,000.
** Employees may be eligible to defer up to two times the contribution limit in effect for the final three years of service. Employees cannot participate in the 3-year catch-up and the 457 plan age 50+ catch-up during the same tax year.
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