What are the contribution limits for deferred compensation plans?

The payroll process automatically enforces statutory limits on deferred compensation contributions at the payroll statutory unit (PSU) or tax reporting unit (TRU) levels.

Note:

If your employee contributes to both 401 (k) and 403 (b) standard or Roth plans, the payroll process enforces the deferred compensation annual limit across the plans.

Employees can participate in multiple plans of different types, such as 401 (k) and 403 (b). As their employer, you're responsible for tracking all elective deferrals contributing to the imposed statutory limit.

The payroll process enforces these limits based on a variety of factors, such as:

Age of the employee, such as eligibility for catch-up contributions
Their seniority, such as whether or not they're eligible for the 15 Years-of-Service rule
Number of years before retirement, such as eligibility for the 457 (b) Special Catch-Up limit
Type of plan

The IRS Internal Revenue Code has established the following limits on how an employee may contribute to their plans.

Contribution limit	What it does
Adjusted Deferred Compensation Limit 403b	Special limit for employees eligible for the 15 Years-of-Service rule. The payroll process enforces this limit when you enable Adjusted Deferred Compensation Limit on the person's card.
Deferred Compensation 401k Annual Limit Deferred Compensation 403b Annual Limit Deferred Compensation 457 Annual Limit	This is the annual limit for base and Roth contributions of the appropriate plan types. It doesn't include any employer-match, after-tax, or catch-up contributions. Note: If your employee contributes to both 401 (k) and 403 (b) standard or Roth plans, the payroll process enforces the deferred compensation annual limit across both plans.
Deferred Compensation 401k Catch-Up Annual Limit Deferred Compensation 403b Catch-Up Annual Limit Deferred Compensation 457 Catch-Up Annual Limit	This is the annual limit for catch-up and Roth catch-up contributions of the appropriate plan types. It doesn't include employer-match contributions. Note: If your employee contributes to both 401 (k) and 403 (b) standard or Roth plans, the payroll process enforces the deferred compensation annual limit across both plans.
Deferred Compensation 401k Puerto Rico Annual Limit	This is the annual limit for Puerto Rico 401 (k) or CODA contributions.
Deferred Compensation 401k Puerto Rico Catch Up Annual Limit	This is the annual limit for Puerto Rico 401 (k) or CODA catch-up contributions.
Elective Deferral Limit Elective Deferral Limit 403b Elective Deferral Limit 457	This is the combined pretax and after-tax annual limit for all employee and employer contributions to the appropriate plan types. It applies to all contribution types for the appropriate element types.
Eligible Compensation Annual Limit Eligible Compensation Annual Limit 403b	This limit sets the maximum amount of compensation considered when calculating employer and employee contributions to the appropriate plan types. The payroll process uses this to determine the amount available for contributions and employer matching. It applies to all contribution types for the appropriate element types.
Employer Contribution Limit Percentage	This limit is the maximum amount of matching contributions an employer can provide, measured as a percentage of the employee's pay per period. The default is 6% of the person's pay per pay period.
Employer Contribution Percentage	Percentage of employee 401 (k) base contributions matched by the employer. The default is 50% of the person's pay per pay period.
Percentage for Employer Contribution	Percentage of employee 403 (b) and 457 (b) base contributions matched by the employer. The default is 50% of the person's pay per pay period.
Special Catch-Up Limit	This is a special 457 (b) plan limit for employees 3 years from retiring. Note: This payroll process applies this limit if you set one of these to Yes. Employee Eligible for Special Catch-Up value definition You set this for your legislative data group (LDG). When you select Yes, it applies to all employees in the LDG. Employee Eligible for Special 457 (b) Catch-Up Contributions on the person's card component

To view these limits:

Start the Calculation Value Definition task.
Select your US legislative data group (LDG), and search for the Pretax Deductions value definition group.
Select the appropriate value to view its statutory limits.