Accounts and investing
401(k), 403(b) and 457(b) limits and catch-ups
The workplace retirement plan contribution limits for the current tax year, how 457(b) plans have their own separate limit, how catch-ups work at 50 and at 60 to 63, and the new Roth catch-up rule.
Education, not advice. This guide explains general rules with invented examples. It isn't financial, tax or legal advice for your situation. Tax figures are for 2026 and come from published IRS, SSA and CMS sources. Rules change, so check current figures before you act.
Workplace retirement plans have annual limits on how much you can put in from your paycheck. The limits rise with inflation most years, and there are extra "catch-up" amounts once you turn 50.
One rule surprises many people: a 457(b) plan has its own limit, separate from a 401(k) or 403(b). If your employer offers both, you can contribute the full amount to each.
2026 limits at a glance
| Limit | 2026 amount |
|---|---|
| Employee deferrals to a 401(k), 403(b) or 457(b) | $24,500 |
| Catch-up, age 50 or older | $8,000 |
| Catch-up, ages 60 to 63 (instead of the age-50 amount) | $11,250 |
| Total additions to a 401(k) or 403(b), including employer money (not counting catch-ups) | $72,000 |
| IRA contributions | $7,500 |
| IRA catch-up, age 50 or older | $1,100 |
| SIMPLE IRA deferrals | $17,000 |
Age-based catch-ups depend on how old you are at the end of the calendar year. If you turn 50 in December, you can make the age-50 catch-up all year.
401(k) and 403(b): one shared limit
The employee deferral limit is per person, not per plan. If you have a 401(k) at one job and a 403(b) at another in the same year, your combined deferrals to both can't exceed $24,500, plus any catch-up.
Employer contributions, such as a match, don't count toward your deferral limit. They count toward the much larger total-additions limit of $72,000 per plan.
457(b): a separate limit
A 457(b) plan is offered mainly by state and local governments, and by some tax-exempt organizations. Its deferral limit is separate from the 401(k) and 403(b) limit.
That means someone with both a 403(b) and a 457(b), common for teachers, university staff and public employees, can defer $24,500 to each in 2026.
Governmental and non-governmental 457(b)s are different
- Governmental 457(b) plans, from states, cities, school districts and public agencies, hold money in trust for employees. Withdrawals after you leave the job have no early-withdrawal penalty, whatever your age. They generally allow the age-50 and age-60-to-63 catch-ups.
- Non-governmental 457(b) plans, from tax-exempt employers such as hospitals and charities, are usually limited to highly paid staff. The money remains the employer's asset until paid out, so it could be lost if the employer fails. Payout choices can be limited. They don't offer the age-based catch-ups described above.
Many 457(b) plans also offer a special catch-up in the last few years before the plan's normal retirement age. It can allow more than the age-50 catch-up, but you can't use both in the same year. Your plan document sets the details.
A worked example
Jordan is 58 and works for a school district. Their salary is $140,000. The district offers a 403(b) and a governmental 457(b).
In 2026, Jordan can contribute:
| Plan | Regular deferral | Age-50 catch-up | Total |
|---|---|---|---|
| 403(b) | $24,500 | $8,000 | $32,500 |
| 457(b) | $24,500 | $8,000 | $32,500 |
| Both | $65,000 |
That's more than Jordan can save from a $140,000 salary, but it shows how much room there is. From the year Jordan turns 60 through the year they turn 63, the larger catch-up applies instead, at the 2026 amounts: $35,750 per plan.
The 457(b) also gives Jordan flexibility. If they retire at 58, they can draw on the 457(b) right away without the early-withdrawal penalty that would apply to most other retirement accounts before 59.5. See withdrawal order.
The Roth catch-up rule for higher earners
Starting in 2026, if your Social Security wages from your employer were more than $150,000 in the prior year, your catch-up contributions to that employer's plan must go in as Roth. They're taxed now instead of later.
Your regular deferrals can still be pre-tax. Only the catch-up portion is affected. If your plan doesn't offer a Roth option, you may not be able to make catch-ups at all.
Pre-tax or Roth?
Most plans let you choose between pre-tax and Roth deferrals, within the same limit.
- Pre-tax lowers your taxable income now. Withdrawals are taxed later.
- Roth gives no deduction now. Qualified withdrawals are tax-free.
The usual guide is to compare your tax rate now with the rate you expect when you withdraw. High earners in their peak years often favor pre-tax. Those early in their careers, or expecting large required distributions later, often favor Roth. A mix keeps options open. See Roth conversions.
IRAs alongside a workplace plan
You can also contribute to an IRA, up to $7,500 in 2026, plus $1,100 at 50 or older. The limit is shared between traditional and Roth IRAs.
Two income limits apply:
- Roth IRA contributions phase out for joint filers with income from $242,000 to $252,000.
- Deducting a traditional IRA contribution phases out if you're covered by a workplace plan, for joint filers from $129,000 to $149,000.
How the app handles limits
When you set contributions, the projection caps them at the IRS limit for each person's age each year, including the catch-ups. It treats a governmental 457(b) as having its own limit. It shares the IRA limit across traditional and Roth IRAs. It doesn't model the special 457(b) catch-up or the total-additions limit, and it doesn't check the Roth IRA income limit, so make sure your entries follow them.
Frequently asked questions
Does my employer's match count toward my $24,500?
No. The deferral limit covers only what you contribute from your pay. Matches count toward the total-additions limit.
Can I contribute to a 401(k) and a 457(b) at different jobs?
Yes. The 457(b) limit is separate, whoever the employer is.
What happens if I go over?
Excess deferrals should be returned by your plan before the tax filing deadline. Otherwise they can be taxed twice. Tell your plan as soon as you notice.