A 403(b) is the workplace retirement plan of public schools, colleges, churches and 501(c)(3) charities. For 2026 you can defer up to $24,500 of salary into one. This calculator projects what the account could hold by the time you retire, before income tax.
Who offers a 403(b), and what's inside it
Only some employers can: public schools, colleges and universities, churches, and charities exempt under Section 501(c)(3). Your savings sit in one of three kinds of account. There are annuity contracts from insurance companies and custodial accounts invested in mutual funds. Church employees may have a retirement income account instead. Which kind you hold matters for costs, as the chart further down shows.
The 2026 limits, including the 15-year extra
The IRS sets the limits each year. Divide by 12 to get the monthly deposit to enter:
| Your situation in 2026 | Yearly limit | Monthly deposit |
|---|---|---|
| Under 50 | $24,500 | $2,041.67 |
| Under 50, with the full 15-year catch-up | $27,500 | $2,291.67 |
| 50 or older, with the $8,000 catch-up | $32,500 | $2,708.33 |
| 50 or older, with both catch-ups | $35,500 | $2,958.33 |
| The years you turn 60 to 63, with the $11,250 catch-up | $35,750 | $2,979.17 |
Your employer's contributions don't count toward these limits. They do count toward an overall cap on everything added to your 403(b) accounts. For 2026 that's $72,000, or 100% of your includible compensation if that's lower.
How the 15-year rule works
This catch-up exists only in 403(b) plans, and only if yours allows it. You need 15 years of service with one eligible employer. The IRS lists public school systems, hospitals, home health service agencies, health and welfare service agencies and churches.
Your extra allowance is the smallest of three amounts:
- $3,000 a year;
- $15,000, minus any 15-year catch-ups you've already made;
- $5,000 for each year of service there, minus all your earlier deferrals with that employer.
Say you've deferred $60,000 over 15 years. Then $75,000 − $60,000 leaves $15,000 of room, so the $3,000 cap applies. The third test is rerun each year, with this year's deferrals added in. Defer the full $27,500 now, and next year's room is $80,000 − $87,500, below zero. So here the catch-up lasts one year, even though the $15,000 lifetime cap would allow five.
At 50 or older you can use both catch-ups, but the order is fixed. The IRS applies anything above $24,500 to the 15-year catch-up first. So at 52, deferring $30,000 uses $3,000 of your 15-year allowance. That happens even though the $8,000 age-50 catch-up could have covered the whole $5,500.
Monthly deposits, compounded monthly
B is today's balance, D the monthly deposit, r the yearly return and t the number of years. Deposits go in at the end of each month.
The calculator takes one deposit for the whole period and doesn't check it against your limit. For catch-up years, run it twice. Project to the year your deposit changes, then enter that result as the new starting balance.
What maxing out, or adding a 457(b), could reach
A 457(b) plan has its own deferral limit, separate from your 403(b)'s. In a governmental 457(b), that's also $24,500 for 2026. With both, you could defer $49,000 a year. A 401(k) from a second job is different: it shares your 403(b)'s $24,500.
Say you're 40, have $40,000 saved and plan to retire at 65. Here are 25 years at an assumed 6% a year:
| $40,000 today, 25 years to go | Monthly deposit | Balance at 65 |
|---|---|---|
| $3,000 a year | $250 | $351,847 |
| $12,000 a year | $1,000 | $871,593 |
| The 2026 403(b) limit, $24,500 | $2,041.67 | $1,593,464 |
| 403(b) and 457(b) limits, $49,000 | $4,083.33 | $3,008,322 |
Going from $12,000 a year to the full 403(b) limit adds $721,871 by 65. Using a governmental 457(b) to the limit as well takes the total past $3 million.
Annuity charges come off every year's growth
An annuity contract adds insurance charges on top of fund costs. The SEC's example charges 1.25% a year for mortality and expense risk, plus 0.15% for administration. That's 1.40% a year before any fund expenses. The SEC also points out that a variable annuity brings no extra tax advantage inside a retirement plan.
Here's the 40-year-old again, putting in $1,000 a month:
$40,000 plus $1,000 a month for 25 years
Year-end balance at a 6% return, with and without 1.40% a year of annuity charges
- Custodial account, 6% $871,593
- Annuity contract, 4.6% after charges $687,248
Show the balances
| Year | Custodial account, 6% | Annuity contract, 4.6% after charges |
|---|---|---|
| 10 | $236,655 | $215,311 |
| 20 | $594,449 | $492,773 |
| 25 | $871,593 | $687,248 |
After 25 years, the charges have cost $184,345. So enter the return you expect after every charge, not the funds' gross return. Moving your money can cost, too. In the SEC's example, a surrender charge starts at 7% and falls a point a year.
Pre-tax, Roth, and taking money out
Traditional deferrals generally escape federal and state income tax until they're paid out. So the projected total is pre-tax, and your withdrawals will be taxed. Your plan may also offer a Roth account. You pay tax on that salary now, and withdrawals, earnings included, come out tax-free.
Money taken out before age 59½ may also cost a 10% penalty. To compare with saving after tax outside work, try the Roth IRA calculator. If you also hold a 401(k), the 401(k) calculator covers employer matches. For all your savings as one pot, use the retirement calculator.
Sources
- IRS, Retirement topics – 403(b) contribution limits (updated March 16, 2026)
- IRS, IRC 403(b) tax-sheltered annuity plans (updated January 30, 2026)
- IRS, How much salary can you defer if you're eligible for more than one retirement plan? (updated February 26, 2026)
- IRS, 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (IR-2025-111, November 13, 2025)
- U.S. Securities and Exchange Commission, Investor.gov: Variable Annuities