REMINDER: Maximum Contribution Limits Reminders for Deferred Compensation 457(b) Plans

Take action to verify compliance with 2016 maximum contribution limits for your plan participants before year end.

• Cooperatives sponsoring tax-exempt or governmental deferred compensation 457(b) plans for employees or for directors need to cap salary deferrals at $18,000 for 2016.

• Employees and directors participating in a plan may be eligible for special catch-up contributions during each of the three years prior to, but not including, the year they reach normal retirement age for the co-op’s primary retirement plan. Reminder: NRECA will calculate a participant’s special catch-up contribution amount upon request.

• Participants in deferred compensation 457(b) plans of government-owned utilities may also take advantage of the age 50 and older catch-up contribution option. The limit is $6,000 for 2016.  Please note: this option is not allowed for 457(b) plans sponsored by tax-exempt co-ops.

IMPORTANT: Participants who are eligible for both the special catch-up and age 50 and older contribution options may choose either one of the two options – not both.

Questions?
Please contact the Deferred Compensation Program team by email at deferredcomp@nreca.coop or by phone 703.907.6375.