Navigator
Catch-Up Options Help Members Save More for Retirement
For late-career employees participating in the Commonwealth of Virginia 457 Deferred Compensation Plan (age 50 or older) who may have fallen behind on their retirement savings, catch-up contributions allow them to save more by exceeding the standard retirement savings limit. It’s also a way for them to maximize tax deductions related to retirement contributions.
The IRS sets annual deferral limits for retirement savings. For 2025, the limit has increased to $23,500. The annual limit applies to:
- Voluntary contributions that Hybrid Retirement Plan members make to the Hybrid 457 Deferred Compensation Plan.
- Roth after-tax or pre-tax contributions made to the Commonwealth of Virginia 457 Deferred Compensation Plan.
- Contributions made to other supplemental 457 plans.
Employers are responsible for monitoring members’ contributions and stopping all 457 contributions and the employer match once they reach the limit. If you identify a member who has exceeded the limit, email dcplans@varetire.org.
Employees participating in the Commonwealth of Virginia 457 Plan can use one of three different catch-up options:
Ages 60-63 Catch-Up
$11,250 in 2025
A higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63.
Age 50+ Catch-Up
$7,500 in 2025
Employees 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. They cannot use the Age 50+ Catch-Up and the Standard Catch-Up in the same calendar year.
Standard Catch-Up
$23,500 in 2025
During each of the three calendar years before normal retirement age, Commonwealth of Virginia 457 Plan participants may contribute up to twice the regular IRS annual contribution limit or the regular annual limit plus the amount of their Standard Catch-Up credit, whichever is less. The Standard Catch-Up credit is the amount participants were eligible to contribute but did not contribute in previous years.
