2014 IRC Section 403(b) and 2014 IRC Section 457(b) Elective Deferral Plan Limits

Many of our member institutions provide their eligible employees with the opportunity to participate in an elective 403(b) Tax Deferred Retirement Savings Plan, and/or, in an elective 457(b) Deferred Compensation Plan. The Internal Revenue Code provides employees, under certain conditions, with the opportunity to contribute additional monies to their respective elective 403(b) plan, or, their elective 457(b) plan. These opportunities are designated as “catch up” provisions.

For 2014, the maximum contribution that an employee may allocate to his/her 403(b) plan is $17,500 if he/she is under age 50 and, $23,000 if he/she is age 50 or older. For 2014, the maximum contribution that an employee may allocate to his/her 457(b) plan is $17,500 if he/she is under age 50 and, $23,000 if he/she is age 50 or older.

For 2014, this means that an employee, under age 50, may contribute $17,500 to a 403(b) plan and $17,500 to a 457(b) plan (total of $35,000 for 2014) and an employee, age 50 or older, may contribute $23,000 to a 403(b) plan and $23,000 to a 457(b) plan (total of $46,000 for 2014).