New IRS Rules for Catch-Up Contributions
Starting January 1, if you earn $145,000* or more, any age-based catch-up contributions to your Commonwealth of Virginia 457 Deferred Compensation Plan must be made as after-tax (Roth) contributions.
Catch-up contributions allow you to save more by exceeding the standard 457 contribution limit* set annually by the Internal Revenue Service. In 2025, for example, the limit is $23,500.
If you participate in the Commonwealth of Virginia 457 Plan, you can use one of two age-based catch-up options:
- Ages 60-63 (Super) Catch-Up* | $11,250 in 2025: A higher catch-up contribution limit applies for members aged 60, 61, 62 and 63.
- Age 50+ Catch-Up* | $7,500 in 2025: Members who are 50 or older during the calendar year may contribute an additional amount over the regular IRS annual contribution limit to the 457 Plan.
You cannot use the age-based catch-up and the Standard Catch-Up in the same calendar year. The Standard Catch-Up is a separate option available during the three years before normal retirement age, allowing you to contribute up to twice the regular limit or the regular limit plus unused contributions from prior years.
*These numbers are indexed with inflation and may change from year to year. Updated information is generally provided by the IRS in the fall but was not available at the time of publication.
