457b 2025 limits check with the annual restrict on the amount of cash that may be contributed to a 457(b) plan, a tax-advantaged retirement financial savings plan for workers of state and native governments and sure tax-exempt organizations. For 2023, the 457(b) contribution restrict is $22,500, and the catch-up contribution restrict for individuals who’re age 50 or older is $7,500.
457(b) plans provide a number of advantages, together with tax-deferred progress of investments, a selection of funding choices, and the power to make catch-up contributions. Moreover, 457(b) plans will not be topic to the identical contribution limits as 401(ok) plans, making them a pretty possibility for high-income earners.