The contribution limits for
457 plans
are the same as for 401(k)s and 403(b)s. Participants 50 and older can make catch-up contributions to help boost their retirement savings. In 2008, the maximum you can put in is $15,500, or $20,500 if you're 50 or older. In the future, 457 contribution limits are scheduled to rise based on the rate of inflation.
Three-year catch-up
If you’re 50 or older, you may not be eligible for the regular catch-up limit if you’re taking advantage of the unique three-year catch-up limit available with a section 457 plan. This provision allows participants within three years of normal retirement age — the earliest age the plan permits employees to retire — to contribute up to twice the normal limit if they haven’t contributed the maximum amount in previous years. For example, if you were eligible to make contributions but didn’t, you may be able to contribute up to $31,000 in 2008.
