HR News

The Internal Revenue Service has increased the maximum dollar amount you may contribute in 2023 to tax-deferred savings plans, such as the Commonwealth of Virginia 457 Deferred Compensation Plan.

• The annual deferral limit for 457 plans for participants younger than age 50 has increased to $22,500, compared to $20,500 in 2022.
• The pre-retirement Standard Catch-Up limit has also increased to $22,500, for a total of $45,000.
• The Age 50+ Catch-Up Limit has increased to $7,500, compared to $6,500 in 2022.

The annual limit includes any voluntary contributions made to the Hybrid 457 Deferred Compensation Plan, if eligible, and any other supplemental 457 plans. Any Roth after-tax or pre-tax contributions made to the Commonwealth of Virginia 457 Deferred Compensation Plan also count toward the limit. As a reminder, hybrid plan members should save the maximum 4% in voluntary contributions first to take full advantage of the employer match before contributing to other supplemental saving plans.

You cannot use the Age 50+ Catch-Up and the Standard Catch-Up in the same calendar year. For more information on the Age 50+ Catch-Up, Standard Catch-Up, military leave make-up, one-time deferrals or investment options, refer to the Contributions section of the Commonwealth of Virginia 457 Deferred Compensation Plan website.