The 3-Year Catch–up provision allows employees who are close to retirement to make contributions up to twice the regular contribution limit.
You are eligible to use the 3-Year Catch-up provision if you:
If eligible for the 3-Year Catch-up provision, you may qualify to contribute up to twice the regular annual contribution limit during the three years prior to, but not including, the year you will reach normal retirement age.
You may only catch-up on amounts you were eligible to contribute in the past but did not. You may go back to the later of the following dates:
In 2003, the IRS maximum contribution limit was $12,000 for the year. If you were eligible to contribute to your employer's 457 deferred compensation plan and only contributed $3,000 that year, you would have $9,000 to "catch up" on. Or if you didn't participate in your employer's deferred compensation plan at all that year, you would have the full $12,000 to "catch up" on.
The catch-up provision allows you (if qualified) to contribute up to twice the regular IRS limit as follows:
The maximum amount you may contribute in a 3-year catch-up year is determined by how much you have missed contributing in the past.
If you qualify to participate in 2017, you could utilize the 3-year catch-up limit in 2017, 2018, and 2019. You are not required to contribute the maximum during this time. If after this 3-year period, you decide to continue working and contributing, you would drop back down to the Age 50+ Limit in 2020 and beyond.
Normal retirement age
Normal retirement age is age 65 unless you declare a different normal retirement age (no later than age 70 ½). The normal retirement age you choose may not be earlier than a year in which you are eligible to receive pension benefits WITHOUT an age reduction penalty from your regular pension plan (IPERS, POR, Judicial). Please consult with your retirement plan’s representative for more information. For example, IPERS will NOT reduce your benefits due to age, if you:
Your normal retirement age determines the time period of your 3-year catch-up provision. 3-year catch-up contributions may not be made in the year you declare as your normal retirement age. You can retire sooner than your declared normal retirement age.
Your declared normal retirement age is irrevocable once you begin to use the 3-year catch-up provision to any extent.
How to qualify and apply:
To qualify for the 3-year catch-up benefit, you must first request a 3-Year Catch-up Worksheet. This worksheet is then completed by your payroll office with your income and deduction information history to determine eligibility. The completed worksheet automatically calculates the maximum amount of missed contributions available for catch-up.
To request a 3-Year Catch-up Worksheet: