What Is the Maximum 403b Contribution?

A 403(b) plan is a retirement savings plan available to employees of public schools, certain non-profit organizations, and ministers. These plans allow eligible employees to save for retirement on a tax-advantaged basis. The Internal Revenue Service (IRS) sets annual limits on the amounts that can be contributed to these accounts. This article details the contribution limits for the 2025 tax year.

Employee Contribution Limits

For the 2025 tax year, the base amount an employee can contribute from their salary, known as an elective deferral, is $23,500. This limit applies to the total of your pre-tax or Roth contributions across all 403(b) and 401(k) plans. It is an individual limit, meaning it follows you across employers if you change jobs during the year. Any contributions made by your employer do not count toward this specific limit.

The tax code allows individuals nearing retirement to save more through catch-up contributions. If you are age 50 or older at any point during the calendar year, you can contribute an additional $7,500. This amount is in addition to the standard elective deferral limit, bringing the potential total for those eligible to $31,000.

Beginning in 2025, a provision allows for a higher catch-up contribution for individuals aged 60, 61, 62, and 63. For this age group, the catch-up limit is $11,250, replacing the standard $7,500 catch-up. This increases the total potential employee contribution for those ages 60-63 to $34,750, provided their plan allows for it.

For example, an employee who is 45 years old can contribute a maximum of $23,500 from their salary for 2025. A 55-year-old colleague can contribute the base limit of $23,500 plus the age-50 catch-up of $7,500, for a total of $31,000. A 62-year-old can contribute the base limit plus the higher catch-up of $11,250, for a total of $34,750.

Special 15-Year Service Catch-Up Contribution

A feature available in some 403(b) plans is a catch-up contribution for long-tenured employees, separate from age-based catch-ups. To be eligible, an employee must have completed at least 15 years of service with a qualified organization. Qualified organizations include educational organizations, hospitals, home health service agencies, and certain other non-profits.

The additional amount you can contribute is the lesser of several figures. The annual increase is capped at $3,000, and there is a lifetime maximum of $15,000 for these contributions. The limit is also constrained by a formula where your lifetime contributions cannot have averaged more than $5,000 per year.

If an employee is eligible for both the 15-year service catch-up and an age-based catch-up, a specific ordering rule applies. Contributions above the standard elective deferral limit are first applied to the 15-year service limit. For example, a 52-year-old teacher with 20 years of service who contributes $34,000 would have it allocated as: $23,500 as a standard deferral, $3,000 under the 15-year rule, and the remaining $7,500 as an age 50+ catch-up.

The Overall Contribution Limit

There is also a broader limit that governs the total amount that can be added to a 403(b) account in a single year, referred to as the overall or annual additions limit. For 2025, this limit is the lesser of 100% of the employee’s compensation or $70,000. This cap is a combined total of all contributions from all sources.

This overall limit includes the employee’s elective deferrals, any catch-up amounts, and any contributions made by the employer. Employer contributions can be matching contributions, where the employer matches a portion of what the employee saves, or non-elective contributions, which are made regardless of whether the employee contributes. These amounts are aggregated to ensure they do not exceed the $70,000 ceiling.

Consider an employee under age 50 who contributes the maximum $23,500 to their 403(b) plan. If their employer provides a matching contribution of $15,000, the total annual addition to the account would be $38,500. This amount is well below the $70,000 overall limit for 2025, making it a permissible contribution.