The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA") which was signed into law on June 7, 2001 made a number of changes to the laws affecting qualified plans. Listed below are some of the changes:
- Increase in contribution and benefit limits to 401(k), 403(b), and 457 plans. You may defer the maximum to a 401(k) and/or 403(b) and contribute the same maximum to the 457. The maximum contribution limits on elective deferrals is $19,500 for 2020. Catch-up contributions: Individuals who have attained age 50 before the close of the calendar year are permitted to make an additional contribution of $6,500 in 2020. The catch-up limit for 457 plan allows for twice the annual deferral limit providing you are three years away from retirement and under the age of 65.
- Changes in deduction limits. Elective deferrals to 401(k), 403(b), and 457 plans will no longer reduce compensation for purposes of the deduction limitation. Elective deferrals are not subject to the 25 percent limitation.
- New rollover and direct transfer rules. All distributions from qualified plans will generally be allowed to be rolled over to any of the foregoing plans and distribution from IRAs (whether traditional or conduit) will be allowed to be rolled over to any of these plans.
- Hardship withdrawal suspensions have been reduced from 12 months to 6 months.
To change your supplemental retirement contributions, please make your changes online.