I recently read the 457(B) FAQs. Under "What are the catch-up provisions in a governmental 457(b) plan?", the response below was given. Can a participant eligible for the "final three year" catch-up contribute $36,000 in 2003? If you are age 50 or older in year 2003, you may contribute an additional $2,000 above the 2003 elective deferral limit of $12,000 (this catch-up is scheduled to increase at a rate of $1,000 per year through 2006). Employers are not required to offer this provision. This catch-up option is only available in public (governmental) 457(b) plans. The 457(b) plan contains a special "catch-up" provision called the "final three year" provision for those approaching retirement (assuming they haven't contributed the maximum amount in prior years). This provision, which used to limit participants to an additional $15,000 over a 3-year period, now permits up to 200% of the elective deferral limit, or $24,000 in 2003 This "catch-up" provision kicks in during the three years prior to "normal" retirement age (as defined in the plan). Example: If a worker is to reach "normal" retirement age in 2009, he or she can take advantage of the "final three year" provision in years 2006, 2007, and 2008. Employers are not required to offer this provision. Note: to determine the underutilized amounts in prior years all of the prior coordination rules apply.