What Are the 457(b) Contribution Limits for 2024?

A 457(b) plan is a type of non-qualified, tax-advantaged deferred-compensation retirement plan. These plans are available to employees of state and local governments, as well as certain non-governmental, tax-exempt organizations. The structure allows eligible employees to set aside a portion of their salary for retirement, with the benefit of deferring income taxes on those savings until a future date. This article provides a detailed look at the specific contribution limits that apply to these plans for 2025.

General Contribution Limit for 2025

For the 2025 calendar year, the maximum amount an employee can contribute to a 457(b) plan through salary reductions is $23,500. This limit is an aggregate cap, meaning it applies to the combined total of any pre-tax (traditional) and post-tax (Roth) contributions made by the employee, should their specific plan offer a Roth 457(b) option.

The contribution limit is tied to the participant’s includible compensation. A participant’s total contribution cannot exceed 100% of their includible compensation or the annual dollar limit, whichever is less. This limit pertains to the employee’s elective deferrals. Any contributions made by the employer do not count toward this $23,500 ceiling and are subject to different aggregate limits.

Catch-Up Contributions for Older Workers

Participants in governmental 457(b) plans who are age 50 or older at any point during the calendar year can make an additional “catch-up” contribution of $7,500. This brings their potential maximum contribution for the year to $31,000, which is the sum of the $23,500 general limit and the $7,500 catch-up amount.

Beginning in 2025, a new rule allows for even higher catch-up contributions for certain participants. Those who are ages 60, 61, 62, or 63 can contribute up to $11,250.

A plan participant is not permitted to make an age-based catch-up contribution in the same year they choose to utilize the Special 457(b) Catch-Up contribution. Non-governmental 457(b) plans are generally not permitted to offer age-based catch-up options.

Special 457(b) Catch-Up Contributions

The Special 457(b) Catch-Up contribution allows participants to make larger contributions for a limited period before retirement. Eligibility is restricted to the three years immediately preceding the year in which the participant reaches their “normal retirement age,” as defined by the terms of their specific plan. This catch-up is designed to let participants make up for years in which they did not contribute the maximum amount allowed.

The calculation for this special limit is the lesser of two amounts: twice the general annual contribution limit for the current year ($47,000 for 2025), or the current year’s general limit ($23,500) plus the total amount of underutilized contributions from all previous years of plan participation. Underutilized contributions are the cumulative difference between what an employee was eligible to contribute and what they actually contributed in prior years.

Coordinating 457(b) Limits with Other Plans

The general employee elective deferral limit for a 457(b) plan is separate from the limits for other employer-sponsored retirement plans, like 401(k)s or 403(b)s. This separation means that for 2025, an employee with access to both a 457(b) and a 401(k) could contribute the full $23,500 to each plan, for a total deferral of $47,000.

This separation of limits also extends to catch-up contributions for governmental 457(b) plans, as the age-based catch-up limits are not aggregated across different plan types. An eligible participant can contribute the full catch-up amount to their 457(b) plan and also to their 401(k) or 403(b) plan. For example, a 55-year-old could contribute a $7,500 catch-up to their 457(b) and another $7,500 to their 401(k). Similarly, a 62-year-old could contribute the higher $11,250 catch-up to both plans.