2026 403(b) limits
| Limit | 2026 |
|---|---|
| Your elective deferrals (pre-tax and Roth combined) | $24,500 |
| Catch-up, age 50 or older | +$8,000 (total $32,500) |
| Catch-up, ages 60 to 63 | +$11,250 instead (total $35,750) |
| You plus your employer (annual additions) | $72,000 |
| Pay that can count | $360,000 |
403(b) plans are offered by public schools, 501(c)(3) tax-exempt organizations and churches. Some plans also allow a 15-year service catch-up of up to $3,000 a year for long-serving employees. It isn't modeled here.
Roth 403(b)
Roth contributions are taxed now and kept in a separate account. Qualified withdrawals, including the growth, are tax-free. Pre-tax contributions lower your tax today but are taxed when you withdraw. Employer contributions here are treated as pre-tax. For 2026, if your wages were above $150,000, catch-up contributions must go in as Roth.
How it's calculated
Match = match % × min(your contribution, match cap % × pay)
Balance next year = balance × (1 + r) + (contributions ÷ 12) × r ÷ i
Contributions go in monthly. i is the monthly rate that compounds to your yearly return, i = (1 + r)1/12 − 1. The after-tax estimate keeps Roth money whole and takes your retirement tax rate off the pre-tax part.
Worked example
A 55-year-old earning $150,000 who tries to put in 30% is held to $32,500 a year at 55 to 59, then $35,750 at 60 to 63, then $32,500 at 64. Over 10 years that's $338,000 from them. With a dollar-for-dollar match on 4% of pay ($6,000 a year), $200,000 now and 6% returns, the balance at 65 is $894,919.
Limitations
- Limits stay at 2026 levels. In practice they rise with inflation.
- Returns are the same every year and before fees. Real markets go up and down.
- Balances are in future dollars. Vesting and the 15-year catch-up aren't included.