Fairfield, CA
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If you're planning for retirement, it’s essential to maximize your contributions to your 457 deferred compensation plan. Eligible employees can take advantage of the Special 3-Year Catch-Up, Age 50 Catch-Up, and Age 60 Catch-Up options. These programs can help you boost your savings as you approach retirement.
Below is an overview of each catch-up option, eligibility terms, and answers to frequently asked questions.
Special 3-Year Catch Up
| Eligibility | Available to employees within three calendar years before their declared "normal retirement age," as defined by their 457 plan. |
| Contribution Limit | You can contribute up to double the annual limit. Your contribution limit under this option is based on unusued amounts from prior eligible years. |
Age 50+ Catch-Up
| Eligibility | Employees are automatically eligible starting January 1 of the calendar year in which they turn 50. |
| Contribution Limit | Allows you to contribute an additional amount (generally 30%) above the regular annual limit. This limit is set annually by the IRS. |
Age 60-63 Catch-Up
| Eligibility | Employees are automatically eligible starting January 1 of the calendar year in which they turn 60. |
| Contribution Limit | Allows you to contribute an additional amount (nearly 50%) above the regular annual limit. This limit is set annually by the IRS. |
Frequently Asked Questions
For the age-based catch-up options, how do I know which one I'm eligible for in a given year?
Eligibility and contribution limits are based on your age at the end of the calendar year (i.e. December 31). This means:
- If you turn 64 at any point during the year, you are no longer eligible for the Age 60-63 Catch-Up for the entire year.
- Starting January 1 of the year you turn 64, all your contributions would fall under the Age 50+ Catch-Up limit, even if you were still 63 at the beginning of the year.
Can I use more than one catch-up option in the same year?
No, you cannot combine or switch catch-up options in the same calendar year. You must choose one option that best suits your needs for the calendar year.
How do I apply for a catch-up contribution?
Age 50+ / Age 60-63 Catch-Up Options
You will need to complete a form indicating that you are applying for the catch-up option; which you will need to submit to HR. Please contact benefits@fairfield.ca.gov for details.
Special 3-Year Catch-Up Option
Applying for the 3-year catch-up requires you to complete a short packet. Please contact benefits@fairfield.ca.gov for details.
What is the deadline for declaring my catch-up contributions?
Age 50+ / Age 60-63 Catch-Up Options
Contributions can be declared at any point during years in which you are eligible, provided you are doing so in alignment with the City's Payroll Calendar.
Special 3-Year Catch-Up Option
Employees must apply and declare their intent to use the Special 3-Year Catch-Up before the calendar year begins to ensure eligiblity and allow sufficient time for calculations and payroll adjustments. Please contact benefits@fairfield.ca.gov for details.