2007 Retirement Savings Plan Contribution Limits
The information below summarizes the retirement plan contribution limits for 2007. You can also view the 2006 Retirement Plan Contribution Limits.
| Plans | Normal Limit | “Age 50” Catch-up Limit | “Pre-retirement” Catch-up Limit |
|---|---|---|---|
| 457 | $15,500 | $5,000 | $15,500 |
| 401(a) | $45,000* | N/A | N/A |
| 401(k) | $15,500 | $5,000 | N/A |
| IRA | $4,000 | $5,000 | N/A |
N/A = Not applicable
* Includes both employer and employee contributions for all defined contribution plans combined (including 401(a), 401(k), and 403(b) plans).
Source: IRS Announcement: http://www.irs.gov/newsroom/article/0,,id=163616,00.html
Details
457 Plans
The normal contribution limit for 457 plans increases to $15,500 in 2007. In addition, employees are eligible to contribute up to an additional (1) $5,000, for a total of $20,500, if they are age 50 or older or (2) $15,500, for a total of $31,000, if they are participating in the “pre-retirement” catch-up provision.
401(a) Plans
The total contribution limit for 401(a) Defined Contribution plans under section 415(c)(1)(A) increased to $45,000 in 2007. This includes both employer and employee contributions for all defined contribution plans combined (including 401(a), 401(k), and 403(b) plans). If your 401(a) plan, like most state and local government 401(a) plans, includes a fixed employee contribution rate, employees will be unable to increase their 401(a) plan contribution.
Please consult the Section 415 Worksheet for details on the annual addition limits for your 401 plan. If you have any questions about the worksheet, please contact ICMA-RC’s Client Services Team, at 1-800-326-7272.
401(k) Plans
The annual elective deferral limit for 401(k) plans was raised to $15,500 in 2007. In addition, employees who are age 50 or older are eligible to contribute up to an additional $5,000, for a total of $20,500.
Please consult the Section 415 Worksheet for details on the annual addition limits for your 401 plan. If you have any questions about the worksheet, please contact ICMA-RC’s Client Services Team, at 1-800-326-7272.
IRAs
The contribution limit for Traditional and Roth IRAs remains $4,000 in 2007. However, employees who are age 50 or older are eligible to contribute an additional $1,000, for a total of $5,000. Employees can quickly and conveniently open a Vantagepoint IRA using our automated IRA Wizard.