Take Action: Changes in 403(b) and 457(b) Contribution Limits for 2020
The annual elective deferral limits for 403(b) and 457(b) plans employee contributions will increase from $19,000 to $19,500 for 2020. Employees who are 50 or older in 2020 may contribute up to $26,000 to each of the plans.
There are different effective dates for contribution changes made for these accounts. 403(b) changes go into effect on the first of the month following the change. If you want 403(b) changes to take effect on your January 1, 2020 check, you must make the changes no later than December 10.
The law mandates that 457(b) contribution changes must take effect from future earnings. That means that changes made in this account go into effect on the first day of the second month following the change. For example, a 457(b) change made on May 15 will take effect for paychecks issued after June 30. Changes to take effect on your February 1, 2020 check must be made by December 18.
The amounts elected for both plans must be on a per paycheck basis (i.e., your election must be the amount you’d like to defer per paycheck, not the total annual deferral amount.)
To make changes to your elections, please log on to Fidelity at www.netbenefits.com or contact Fidelity at (866) 682-7787.