IRS contribution limits
Arizona State Retirement System
The IRS limits the amount of annual compensation subject to Arizona State Retirement System contributions. When the limit is reached, contributions must stop for the remainder of the fiscal year.
ASRS contribution limit charts hired before Jul. 1, 1996 | hired on or after Jul. 1, 1996
Optional Retirement Plan
Two IRS limits apply to the Optional Retirement Plan:
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415 limit: Total employee and employer contributions may not exceed the annual limit.
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Compensation limit: Contributions must stop when earnings reach the annual limit.
Effective Jan. 1, 2016, both limits are tracked by the calendar year, Jan. 1 to Dec. 31. The lower of the two limits will apply. When the limit is reached, contributions must stop for the remainder of the calendar year.
ORP contribution limit charts hired before July 1, 1996 | hired on or after July 1, 1996.
Voluntary 403(b) and 457(b) deferred compensation plans
If you are enrolled in more than one voluntary 403(b) plan, your combined contributions cannot exceed the annual limit. If you work for multiple employers, it is your responsibility to ensure that our voluntary 403(b) plan contributions do not exceed the IRS annual contribution limits. These limitations are cumulative across all of your 401(k) and 403(b) plans. You may also contribute the maximum to the 457(b) deferred compensation plan. The same rules for the 403(b) plan also apply to the 457(b) plan.
Examples:
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If under age 50 in 2020, you can contribute $10,000 to one 403(b) plan, contribute $9,500 to another 403(b) plan and contribute $19,500 to the 457(b) plan.
- If under age 50 in 2020 and you contributed $10,000 to another employer's 401(k) plan or 403(b) plan, you can contribute $9,500 to ASU's 403(b) plan and $19,500 to the 457(b) plan.
Catch-up contributions
If you are age 50 or older, you are automatically eligible to make catch-up contributions of an additional $6,500 in 2020 to both your 403(b) and 457(b) plan for a total of $26,000 each.
| Basic contribution annual limits | Automatic catch-up contribution annual limits for participants age 50 and older | |
|---|---|---|
| 2015 | $18,000 | $6,000 | total basic and catch-up $24,000 |
| 2016 | $18,000 | $6,000 | total basic and catch-up $24,000 |
| 2017 | $18,000 | $6,000 | total basic and catch-up $24,000 |
| 2018 | $18,500 | $6,000 | total basic and catch-up $24,500 |
| 2019 | $19,000 | $6,000 | total basic and catch-up $25,000 |
| 2020 | $19,500 | $6,500 | total basic and catch-up $26,000 |
403(b) Plan lifetime catch-up provision — 15-year rule
This provision may allow you to increase your contributions above the basic annual limit and age 50 and older catch-up provision by $3,000 per year. To qualify, you must have 15 or more years of service and have contributed on average less than $5,000 a year to your 403(b) plan. The lifetime catch-up provision limit is $15,000. To find out if you are eligible for this provision, contact your 403(b) provider.
457(b) plan double limit catch-up provision
If you are within three calendar years of retirement, you may be eligible to double the basic annual limit:
- 2015–2017, $36,000.
- 2018, $37,000.
- 2019, $38,000.
- 2020, $39,000.
To find out if you are eligible for this provision, contact our Nationwide retirement solutions plan representative.
Questions? Ask HR.