2009 IRS Contribution Limits for 403(b) and 457 Plans

TAMPA, Fla. (Dec. 2, 2008) - The IRS has increased the maximum pre-tax contribution limits for 2009 for 403(b) Tax Sheltered Annuities and 457 Deferred Compensation retirement plans.

The new limit for each plan for 2009 will be:

403(b) Tax Sheltered Annuity and/or Optional Retirement Plan: $16,500

457 State Deferred Compensation Plan: $16,500

If you are 50 years of age or older and qualify, you may use the IRS’s catch up provision, which allows contributions up to an additional $5,500 into each plan, increasing the total limit for each plan to $22,000 for the year, or $44,000 if you are enrolled in both plans.

Depending on your contribution history and years of service, you may be able to contribute even more. Contact your plan provider directly to determine your eligibility to contribute additional funds to your plan(s).

Employee contributions will stop automatically when the IRS limit has been reached for the year and will resume automatically at the beginning of the next calendar year.

For more information, visit the HR Web site or contact a benefits representative on your campus.