Contribution Limits
Contribution limits are determined by the Internal Revenue Service (IRS).
| Limitations | 2024 |
|---|---|
| 457 | |
| Annual Deferral Limit for 457 Plans | $23,000 |
| “Pre-Retirement” Catch-Up Limit |
$23,000 |
| “Age 50” Catch-Up Limit |
$7,500 |
| 401 | |
| 401 Defined Contribution Plans – Annual Additions (§415(c)(1)(a)) | $69,000 |
| 401 Defined Benefit Plans – Maximum Annual Benefit* (§415(b)(1)(a)) | $275,000 |
| 401 Annual Compensation Limit** (non-grandfather/grandfather) (§401(a)(17)) | $345,000/$505,000 |
| Annual Deferral Limit for 401(k) Plans (§402(g)) | $23,000 |
| 401(k) “Age 50” Catch-Up Limit (§414(v)) | $7,500 ($30,500 total) |
| IRA | |
| Maximum Annual Addition | $7,000 |
| “Age 50” Catch-Up Limit | $1,000 ($8,000 total) |
* Special limitations apply to defined benefit plans. Please contact your defined benefit plan administrator should you require additional information.
**OBRA 1993 provided a governmental exception for the maximum compensation limit that grandfathers certain employees under the 1993 compensation limit of $235,840. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, prior to January 1, 1994, are subject to the maximum compensation limit of $235,840 as indexed and shown above as the “grandfather” limit. Employees eligible to participate in a governmental plan, utilizing the ICMA-RC plan document, after January 1, 1994, are subject to the maximum compensation limit of $150,000 as indexed and shown above as “non-grandfather” limit.
Roth IRA
Cobb County offers a Roth IRA administered by MissionSquare Retirement. Saving through a Roth IRA allows employees to withdraw earnings on a tax-free basis, assuming certain conditions are met. Employees have access to their principle savings anytime without taxes or early withdrawal penalties.
| Eligible Employees | Full and part time |
| Minimum Contribution | $10 per bi-weekly (post-tax) |
| Maximum Contribution | Per IRS regulations currently $7,000 under age 50, and $8,000 for those 50 or older annually |
| Enrollment Period | Year-Round |
| Principal Withdrawal Period | Year-Round |
| Principal and earnings withdrawal age restriction | Principal can be withdrawn at any time without penalty To withdraw earnings, must be age 59 1/2 and have a minimum of 5 years in plan |
| Group # 705408 |
Questions?
MissionSquare Retirement
https://www.missionsq.org/
800-669-7400
Make an Appointment with a MissionSquare Retirement Representative
Danny Kierath
202-759-7051
dkkierath@missionsq.org
Human Resources Benefits Division
770-528-2541