Terms of Use
What is a 403(b)?
A 403(b) is an employer sponsored retirement savings plan that allows you to save pre-tax dollars for your retirement.
A Roth 403(b) permits only after-tax contributions but allows you to diversify your tax risk by letting eligible participants make tax-free withdrawals after retirement.
The IRS limits the amount you can contribute each year
In 2025:
- Up to 100% of your includable compensation (if less than the elective deferral limit). Includable compensation is your gross compensation less any pre-tax deductions.
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You can contribute up to $23,500. This limit is applicable if you're under age 50 as of December 31st (referred to as the "elective deferral amount").
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If you are 50 or older any time during the calendar year you can contribute an additional $7,500. That means you can contribute up to $31,000 if you're age 50 or older (referred to as "catch-up contributions")
- There is also a catch-up contribution of $11,250 for those ages 60–63.
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Employer contribution limit:
In 2025, for those with employer matches or other employer contributions, the combined employee and employer contribution limit is $70,000 or 100% of compensation (whichever is less). That means that you can contribute up to $23,500 ($31,000 if you're over 50) and an employer can add up to another $39,000-$46,500.
15-Year Rule
Employees with 15 years of service with their current employer and an annual average contribution of less than $5,000 per year are eligible for an additional $3,000 contribution per year up to a lifetime maximum catch up of $15,000. This is known as the 15-year rule.
For participants eligible for both the age 50 catch-up and the 15-year rule, the IRS will apply contributions above the regular limit first to the 15-year rule. Employers are not required to make this provision available.