Annual contribution limits for 403(b) plans in 2024

The IRS sets a annual contribution limit for 403(b) plans that applies to most employees. For 2024, you can contribute up to $23,500 of your own salary to a 403(b) account. This limit is the same across all 403(b) plans — it does not vary by employer, state, or plan type.

The limit covers only employee deferrals, which is money you choose to have withheld from your paycheck. It does not include employer contributions, which your school or nonprofit may add on top. If your employer contributes to your account, that money counts toward a separate, higher limit.

The IRS adjusts this limit most years to account for inflation. The 2024 figure of $23,500 is higher than 2023's $22,500. Check with your plan administrator or the IRS website each January to confirm the current year's limit, since it may change.

Key Takeaways

  • You can defer up to $23,500 of your salary into a 403(b) in 2024, and this limit increases most years with inflation.
  • Employer contributions to your account are separate from your own deferrals and do not reduce your $23,500 limit.
  • If you are age 50 or older, you can contribute an additional $7,500 per year as a catch-up contribution.
  • Your plan documents and payroll office determine how often you can change your contribution amount and whether your employer offers matching.

Catch-up contributions if you are 50 or older

The IRS allows employees age 50 and older to contribute extra money beyond the standard limit. This is called a catch-up contribution, and it lets you set aside more for retirement if you started saving later or want to accelerate your savings in your final working years.

For 2024, the catch-up amount is $7,500 per year. This means a 50-year-old employee can contribute up to $31,000 total ($23,500 standard limit plus $7,500 catch-up). Like the standard limit, the catch-up amount adjusts for inflation and may change each year.

You do not need to ask permission to make catch-up contributions. Once you turn 50, you can instruct your payroll office to increase your deferral amount. Your plan must allow catch-up contributions — most do, but check your plan documents or ask your benefits administrator to confirm.

How employer contributions work separately

Many schools and nonprofits contribute money to their employees' 403(b) accounts as part of compensation. This employer contribution is not subtracted from your $23,500 personal limit. The two are tracked separately for IRS purposes.

Your employer might contribute a flat amount each year, a percentage of your salary, or a match based on how much you defer. For example, an employer might contribute $2,000 annually to every employee's account, or match 50 cents for every dollar you contribute, up to 3 percent of your salary.

The combined total of your deferrals and your employer's contributions cannot exceed $69,000 in 2024 (or $76,500 if you are 50 or older and your employer allows catch-up contributions). Your plan administrator tracks this combined limit and will stop accepting contributions once the ceiling is reached.

Changing your contribution amount during the year

You can usually change how much you defer from each paycheck, but the timing and frequency depend on your specific plan. Most plans allow changes during open enrollment, which typically happens once a year. Some plans let you make changes at any time, while others restrict changes to specific dates.

Life events — such as marriage, divorce, birth of a child, or a significant change in income — may allow you to change your contribution outside the normal enrollment window. Your plan documents describe which events may have access to and what paperwork you need to submit.

Contact your employer's benefits office or plan administrator to learn when you can adjust your deferral. They can tell you the exact important date and whether your plan allows mid-year changes. Keep in mind that any change you make applies to future paychecks, not retroactively to earlier ones.

Contribution limits if you work for multiple employers

If you have 403(b) accounts at more than one employer — for example, teaching at two schools or working for two nonprofits — your total deferrals across all accounts cannot exceed the annual limit. The $23,500 cap in 2024 applies to the sum of all your 403(b) contributions, not to each account separately.

You are responsible for tracking your total contributions across all employers. If you exceed the limit, the excess is taxable income and may trigger penalties. Some employers coordinate with each other to prevent over-contributions, but many do not, so you should monitor your pay stubs and deferral statements yourself.

If you also have a 401(k) or straightforward IRA at another job, those contributions count toward separate limits and do not reduce your 403(b) allowance. However, if you have both a 403(b) and a 401(k) in the same year, the combined deferrals to both accounts cannot exceed $23,500 total.

Pre-tax versus Roth contributions and their limits

Most 403(b) plans offer both pre-tax and Roth contribution options. Pre-tax contributions reduce your taxable income in the year you make them, while Roth contributions are made with after-tax dollars but grow tax-free. The $23,500 annual limit applies to your combined pre-tax and Roth deferrals — you cannot contribute $23,500 to each type.

For example, you could defer $15,000 as pre-tax and $8,500 as Roth in 2024, as long as the total is $23,500 or less. Your plan documents and payroll system let you split your contributions between the two types. If your plan offers both options, you can change the split during open enrollment or after may have access to life events.

Not all 403(b) plans offer Roth contributions. Check your plan documents or ask your benefits administrator whether this option is available to you. If it is not, you can only make pre-tax deferrals to your 403(b), though you may be able to open a separate Roth IRA through a bank or brokerage.

What happens if you contribute more than the limit

If your total 403(b) contributions exceed the annual limit — whether by accident or because you worked for multiple employers — the excess amount is considered excess deferral. The IRS taxes this excess in the year it was contributed, and you may owe a 6 percent excise tax on the overage each year it remains in the account.

Your plan administrator should catch over-contributions and notify you, but this does not always happen, especially if you have accounts at multiple employers. If you discover an over-contribution, contact your plan administrator right away. Many plans allow you to withdraw the excess and any earnings on it, which can reduce or eliminate the tax penalty.

The important date to correct an excess deferral is usually April 15 of the following year. Acting quickly improves your options for fixing the problem. Keep copies of your contribution statements from all employers each year so you can verify your total deferrals.

Frequently Asked Questions

Can I contribute more if my employer does not make contributions?

No. The $23,500 limit applies regardless of whether your employer contributes. However, if your employer does not contribute, you have more flexibility to increase your own deferrals without hitting the combined limit of $69,000. Ask your benefits office whether your employer plans to contribute and how much.

Do I have to contribute the maximum amount?

No. You can contribute any amount from zero up to the limit. Many people contribute less than the maximum based on their budget or financial situation. Your employer may require a minimum deferral to receive a match, so check your plan documents.

What if I turn 50 mid-year?

You can make catch-up contributions starting the month you turn 50. Notify your payroll office of your birthday so they can adjust your deferral amount. You do not need to wait until the next calendar year or the next pay period after your birthday.

Can I roll over contributions from another retirement account into my 403(b)?

Yes, you can roll over funds from a previous 403(b), 401(k), or traditional IRA into your current 403(b), subject to your plan's rules. A rollover does not count toward your annual contribution limit. Your plan administrator can explain the rollover process and any restrictions your plan has.

Do student loan repayments reduce my contribution limit?

No. Student loan repayments are separate from 403(b) contributions and do not affect your $23,500 annual limit. However, some employers offer student loan repayment information as an additional benefit, which is separate from your retirement savings.