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I have several late-career employees looking to fill gaps in their retirement savings. What catch-up options are available?
Employees in certain age groups participating in the Commonwealth of Virginia 457 Deferred Compensation Plan can use catch-up contributions 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.
Employees have a choice of three 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 aged 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 (Maximum of $47,000)
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 ($23,500 in 2025), 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.
Employers handle monitoring members’ contributions and stopping all 457 contributions and the employer match once they reach the limit. If you find a member who has exceeded the limit, email dcplans@varetire.org.
