2026 457(b) limits
| Limit | 2026 |
|---|---|
| Annual deferral limit | $24,500 |
| Catch-up, age 50 or older (governmental plans) | +$8,000 (total $32,500) |
| Catch-up, ages 60 to 63 (if the plan allows) | +$11,250 instead (total $35,750) |
| Special catch-up, last 3 years before normal retirement age | Up to twice the limit ($49,000), if you have unused room from past years |
The special catch-up is the lesser of twice the annual limit, or this year's limit plus the unused limits from earlier years. You can't use it and the age-based catch-up in the same year, so the calculator uses whichever is larger each year. The 457(b) limit counts employer contributions too, and it's separate from 401(k) and 403(b) limits, so you can max out both.
Governmental vs non-governmental
- Governmental plans (state and local governments) work much like a 401(k). They can offer age-50 catch-ups and Roth contributions. Their distributions aren't subject to the 10% early withdrawal tax, except money rolled in from another type of plan or IRA.
- Non-governmental plans (tax-exempt employers) are limited to a select group of management or highly paid employees. The money stays the employer's property and is open to its creditors. Age-50 catch-ups aren't allowed.
How it's calculated
Limit = $24,500 + catch-up for your age, or the special catch-up if larger
Your contribution = min(your % × pay, limit − employer contribution)
Balance next year = balance × (1 + r) + (contributions ÷ 12) × r ÷ i
Your contribution = min(your % × pay, limit − employer contribution)
Balance next year = balance × (1 + r) + (contributions ÷ 12) × r ÷ i
Worked example
A governmental employee aged 61, retiring at 64, earns $120,000, wants to put in 50%, and has $30,000 of unused limit. Age 61: the special catch-up allows min($49,000, $24,500 + $30,000) = $49,000, more than the $35,750 age catch-up, and uses $24,500 of the unused room. Ages 62 and 63: only $5,500 of room is left, so the $35,750 age catch-up is larger. Total: $120,500.
Limitations
- Your plan decides which catch-ups it offers and its normal retirement age. Retire at is used as that age.
- Limits stay at 2026 levels. Returns are steady and before fees.
- For 2026, if your wages were above the $150,000 threshold, age-based catch-ups must be Roth. The special catch-up can still be pre-tax.