Additional Tax Information
Internal Revenue Service Limits
- The Internal Revenue Service has various limits for each tax-deferred investment plan. The maximum amount an employee can contribute to the PERAPlus 401(k) and/or 457 Plan in 2018 is $18,500.00. Participants age 50 and older are allowed to make $6,000.00 in additional contributions if they are already contributing the maximum amount. The maximum amount of all contributions (employee, employer, and catch-up) in 2018 cannot exceed $55,000.00 or 100 percent of gross compensation minus your regular member contribution to PERA, which is 8 or 10 percent of PERA-includable salary.
- For 403(b) tax-sheltered plans, the sum of 401(k) and 403(b) contributions cannot exceed $18,500.00 or 100 percent of gross compensation minus your regular contribution to PERA, which is 8 or 10 percent* of PERA-includable salary. Combined 401(k) and 403(b) catch-up contributions cannot exceed $6,000.00.
- There is no coordination of contribution limits between 457 and 401(k) plans and 457 and 403(b) plans. However, participants using the special "three years before retirement" 457 catch-up provision cannot also contribute the $6,000.00 catch-up amount.
- If you are enrolled in either of these plans, please work with your plan administrator's representative to understand the limits that may apply to you.