How much can I put in the Oregon Savings Growth Plan?
The 2026 limits for Oregon's 457(b) plan, the three kinds of catch-up contributions, the Roth option, and why 457(b) money is easier to reach before 59½.
For 2026, you can defer up to $24,500 into the Oregon Savings Growth Plan (OSGP), plus a catch-up of $8,000 if you're 50 or older, or $11,250 instead if you turn 60, 61, 62 or 63 this year. In the three years before your normal retirement age, a special 457 catch-up can allow up to $49,000. Withdrawals after you leave your job have no 10% early withdrawal tax, at any age. The IRS had not announced 2027 limits as of October 18, 2026.
What OSGP is
The Oregon Savings Growth Plan is a voluntary 457(b) deferred compensation plan run by PERS for state workers and employees of local governments that adopt it. It's separate from your PERS pension and IAP. You choose how much to save from each paycheck, starting at $25 per pay period, as a percentage or a dollar amount, and you can start, change or stop at any time (PERS: Oregon Savings Growth Plan).
The PERS Board is the trustee, the Oregon Investment Council oversees the investments, and Voya Financial keeps the records. You can also roll money into OSGP from other eligible plans.
2026 contribution limits
These are the IRS limits for governmental 457(b) plans in 2026 (IRS: COLA increases for dollar limitations; IRS Notice 2025-67):
| Your age in 2026 | Basic + catch-up | Total |
|---|---|---|
| Under 50 | $24,500 | $24,500 |
| 50 to 59, or 64 and older | $24,500 + $8,000 | $32,500 |
| Turning 60, 61, 62 or 63 | $24,500 + $11,250 | $35,750 |
| Special 457 catch-up years | Up to twice the basic limit | Up to $49,000 |
The age-based catch-up depends on the age you reach by the end of the year, so someone who turns 60 in December can use the higher amount all year. The "super catch-up" for ages 60 to 63 comes from the SECURE 2.0 Act; once you turn 64, you're back to the regular $8,000.
A separate limit from a 403(b) or 401(k)
The 457(b) limit is its own limit. The IRS says it "is not combined with your deferrals made to a 403(b) or other plans" (IRS: Deferring to more than one plan). A school or university employee with access to both a 403(b) and OSGP could, in principle, defer the full amount to each.
2027 limits
The IRS usually announces next year's limits in the fall. As of October 18, 2026, the IRS limits page still showed 2026 as the latest year, so we haven't listed 2027 figures. Check the IRS page above before you set your 2027 contributions.
The special 457 catch-up
457(b) plans have a catch-up that 401(k) and 403(b) plans don't. It's meant for people who didn't save the maximum in earlier years (IRS: 457(b) catch-up contributions):
- When: the last three taxable years ending before your normal retirement age under the plan.
- How much: the lesser of twice the basic limit ($49,000 in 2026) or the basic limit plus the amount you could have deferred in earlier years but didn't (the "underutilized" amount).
- Normal retirement age: generally the earlier of 65 or the age you can retire with an unreduced pension, though plans can let you pick an age within IRS limits.
- Not both at once: you can't use the age 50 catch-up and the special catch-up in the same year. The plan figures both, and you use whichever allows more.
OSGP requires you to apply for the special catch-up. Contact OSGP well before the three-year window so they can work out your underutilized amount from past years.
Morgan, a made-up state employee, plans to retire with a full pension at 62 and turns 59 in 2026. Morgan saved only $5,000 a year in OSGP for many years.
- Regular limit with age 50 catch-up: $24,500 + $8,000 = $32,500.
- Special catch-up: the lesser of $49,000 or $24,500 plus Morgan's unused amounts from prior years. With many years of unused room, that's $49,000.
- Morgan can use the larger figure, $49,000, if the plan approves it and Morgan's pay allows.
Pre-tax or Roth
OSGP offers both. Pre-tax contributions lower your taxable pay now, and withdrawals are taxed later. Roth contributions are taxed now, and qualified withdrawals, including the growth, come out tax free. You can choose either or split between them.
Roth catch-up rule for higher earners
Starting in 2026, if your Social Security (FICA) wages from your employer in the prior year were more than $150,000, your age-based catch-up contributions must go in as Roth (IRS Notice 2025-67). For 2026, that test uses your 2025 wages. PERS updated OSGP's rules for this change and notes that most special 457 catch-up contributions can still be pre-tax, though part may need to be Roth (PERS: OSGP SECURE 2.0 rule notice).
Getting money out
No 10% early withdrawal tax
This is the big advantage of a governmental 457(b). The IRS says distributions from a governmental 457(b) "are not subject to the 10% additional tax," except for amounts that came from a rollover from another type of plan or an IRA (IRS: Exceptions to tax on early distributions). So if you leave your job at 56, you can draw on your own OSGP deferrals right away and pay only regular income tax on pre-tax money.
By contrast, a 401(k), 403(b) or the PERS IAP generally needs you to be 55 in the year you leave (50 for qualified public safety workers) to avoid the 10% tax, and an IRA needs 59½.
When you can withdraw
- After you leave your job: you can withdraw, roll over, or leave the money in the plan. Ask OSGP about the current payout choices.
- While still working: withdrawals are limited, for example for an unforeseeable emergency, or a one-time withdrawal of a balance of $5,000 or less if you haven't contributed for two years (OSGP: In-service distributions).
- Loans: OSGP offers loans against your balance. In 2026, PERS proposed letting borrowers repay by bank debit instead of only through payroll, so ask OSGP for the current loan rules.
- Required minimum distributions: you must start taking money out by the federal deadline. PERS lists age 73 for people born 1951 to 1959 and 75 for people born in 1960 or later.
How OSGP fits with PERS
Your PERS benefits are fixed by formula. PERS notes that you can't raise your IAP contribution above the set rate, except to make up for the part redirected to the Employee Pension Stability Account. OSGP is the main way to save more through payroll with tax benefits.
- A bridge to Social Security. Because there's no 10% tax, OSGP can cover the years between retiring and starting Social Security, which raises your Social Security benefit if you wait. See when to start Social Security.
- A home for your IAP. If you take your IAP as a lump sum or 5-year payout, you can roll it into OSGP, and PERS transfers it automatically. The rolled-in money keeps the 10% early withdrawal tax rules of its original plan. See IAP payout options.
- Buying PERS service. OSGP money can be moved directly to PERS to restore forfeited service or buy service credit, where you're eligible.
What to do next
- Check your current deferral and whether you're on track to use your 2026 limit before your last paycheck of the year.
- If you're within about four years of your normal retirement age, ask OSGP (800-365-8494) about the special 457 catch-up.
- Check your 2025 FICA wages if you're 50 or older; above $150,000, your 2026 catch-up must be Roth.
- Talk to a tax professional about pre-tax versus Roth for your situation.
Our planner adds your savings to your PERS pension and Social Security to show your income in retirement.
Plan my retirement incomeCommon questions
What is the 457(b) limit for 2026?
$24,500, plus $8,000 if you're 50 or older, or $11,250 instead if you turn 60 to 63 in 2026.
What is the 457(b) limit for 2027?
The IRS hadn't published it as of October 18, 2026. Check the IRS limits page once it's announced.
Can I use the special 457 catch-up and the age 50 catch-up together?
No. You can use only one in a given year, whichever allows the larger contribution.
Is there a penalty for taking money out of OSGP before 59½?
Not on your own 457(b) deferrals. The 10% additional tax applies only to money rolled in from another type of plan or an IRA.
Can I contribute to OSGP and a 403(b) at the same time?
Yes, if you have access to both. The 457(b) limit is separate from the 403(b) limit.
Does OSGP have a Roth option?
Yes. You can choose pre-tax, Roth, or both.
General information, not advice. We aren't part of Oregon PERS or OSGP. For your account and catch-up eligibility, call OSGP at 800-365-8494; for tax questions, ask a tax professional.