The amounts eligible to contribute to the MNDCP are different as a participating employee and employer.
Please refer to the Employer Limits and Employee Limits sections below to learn more.
Employer limits
Many Minnesota public employers have provisions providing an employer contribution to their employee's deferred compensation 457(b) or 403(b) accounts; however, restrictions apply pursuant to Minnesota Statute ยง356.24:
In general, it is unlawful for a school district or other governmental subdivision or state agency to contribute public funds to a supplemental pension or deferred compensation plan that is established, maintained, and operated in addition to a primary pension program for the benefit of the governmental subdivision employees.
However, a matching contribution may be made if an employer's supplemental plan coverage is provided for in a personnel policy or collective bargaining agreement between the public employer and the exclusive representative of public employees.
The matching contribution to a 457(b) or 403(b) plan provider must be made on a dollar-for-dollar basis where the employer contribution may not exceed one-half of the available elective annual deferral per year per employee under the Internal Revenue Code (currently $11,500 for those under age 50 and $15,250 for those over age 50).
Employee limits
An employee may contribute as little as $10 per paycheck. The maximum amount an employee may contribute (pre-tax & Roth after-tax combined) in a calendar year is either the amount listed below or 100% of their annual includible compensation whichever is less.
Types of payments included in the contribution limits
The annual maximum contribution limits include:
- Employee salary deferral contributions
- Employer matching contributions
- Severance or lump sum payments
Note: Rollover amounts are excluded when determining contribution limits.
|
|
||
|---|---|---|
Participant Age |
2025 |
2024 |
| Under Age 50 | $23,500 | $23,000 |
| Age 50 & Over | $31,000 | $30,500 |
| Age 60, 61, 62,63 | $34,750 | N/A |
| Catch-Up Provision | $47,000 | $46,000 |