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, 62,631 | $34,750 | N/A |
| Catch-Up Provision2 | $47,000 | $46,000 |
1Effective in 2025, the SECURE 2.0 Act increases the contribution limit for participants age 60, 61, 62 and 63.
Q. When is the age determined?
A. A participant's age is determined at the close of the calendar
year. The increase applies to eligible participants who would
attain age 60 and would not attain age 64 by the close of the
calendar year.
For example, a participant turning age 60 in May 2025 will be
eligible for the increased contributions as of January 1, 2025
because they will attain age 60 in 2025. A participant turning
age 64 in June 2025 will not be eligible for the increased
contributions because they will attain age 64 during 2025.
The standard age 50 & Over contribution limit will apply to this
participant.
Q. What happens to the age 60-63 contribution limit after the
participant turns age 64?
A. The contribution limit reverts to the age 50 & Over limit.
2The Catch-Up Provision may allow participants to make up for
under-utilized contributions in past years and contribute up to
twice the Under Age 50 contribution limit if the participant is within
three years of their normal retirement age (the age at which they
are eligible for an unreduced pension benefit).
To be eligible for the Catch-Up Provision, a participant must apply
with MSRS and be approved to contribute up to the Catch-Up limit.