November 25, 2024
Supplemental retirement, deferred compensation plans updated
The Internal Revenue Service has increased the amounts individuals can contribute to their 403(b) and 457(b) accounts for 2025. The basic limit increased from $23,000 to $23,500. Employees age 50 and older can elect to defer an additional $7,500 for the year, for a total maximum deferral of $31,000.
Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees age 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500. The limits apply to both the 403(b) and 457(b) plans.
More detailed information can be found in the updated universal availability notice, or you can contact the Human Resources Employee Benefits office at 618-453-6668 or hrbenefits@siu.edu if you have any questions.