2019 403(b) Contribution Limit
For 2019, the 403(b) Contribution Limit is $19,000 (Elective deferral limit) and +$6,000 (Catch-up limit, age 50 and over).
Effective 2019-01-01Source: Notice 2018-83 (IRS)Verified 2026-09-01
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Elective deferral limit | $18,500 | $19,000 | +$500 (+2.7%) |
| Catch-up limit, age 50 and over | +$6,000 | +$6,000 | +$0 (+0.0%) |
Who it applies to
Participants in applicable employer plans subject to the § 402(g)(1) elective deferral limit
What changed this year, and why
Effective January 1, 2019, the elective deferral limit under § 402(g)(1) increased to $19,000, up from $18,500 in 2018. The catch-up contribution limit under § 414(v)(2)(B)(i) for participants age 50 or over remained at $6,000.
Common questions
- What is the elective deferral limit under § 402(g)(1) for 2019?
- The elective deferral limit under § 402(g)(1) is $19,000 for 2019.
- Is there an additional catch-up contribution for older participants?
- Yes. Under § 414(v)(2)(B)(i), participants who are age 50 or over by the end of 2019 may contribute an additional $6,000 as a catch-up contribution.
The other ceiling: total contributions of 100% of pay
The limit on annual additions is the first of two components that make up your MAC. It caps the total contributions that can reach your account in a single year, combining elective deferrals, employer nonelective contributions, and after-tax employee contributions. For 2019, the rule sets the ceiling at the lesser of $56,000 or 100% of your includible compensation for your most recent year of service. The 100% test means that even when the dollar figure would allow more, the plan cannot credit you with contributions exceeding the pay you actually earned from the employer maintaining the account. Because the limit is applied as a lesser-of test, a part-time worker whose includible compensation is below $56,000 would see their annual additions ceiling fall to that lower compensation amount rather than the full $56,000. The rule applies across every account the same employer maintains for you, so contributions to multiple accounts with one employer are added together before the comparison is made.
The limit on an- nual additions generally is the lesser of: • $55,000 for 2018 and $56,000 for 2019, or • 100% of your includible compensation for your most recent year of service.
Publication 571 (2019), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
Two limits, and your MAC is the lesser of them
Your account faces two separate annual ceilings. The first, called the limit on annual additions, caps the total of all contributions - elective deferrals, employer nonelective contributions, and after-tax employee money - at the lesser of a dollar figure or a percentage of your includible compensation. The second ceiling is the limit on elective deferrals, which applies to the salary-reduction dollars you direct into the account. Your Maximum Amount Contributable, or MAC, is the smaller of the two results. If your includible compensation is modest, the annual-additions ceiling may be the binding constraint; if your pay is high, the elective-deferral ceiling - $19,000 for 2019 - usually is. Catch-up contributions, including the additional catch-up of up to $6,000 available to older participants, sit on top of the MAC and are not counted against it.
Generally, contributions to your 403(b) account are limited to the lesser of: • The limit on annual additions, or • The limit on elective deferrals.
Publication 571 (2019), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
The 15 years of service catch-up almost nobody uses
If you have at least 15 years of service with a qualifying employer - such as a school, hospital, home health agency, health and welfare agency, church, or associated organization - and your plan document permits it, your elective-deferral ceiling is raised above the general limit. The increase equals the smallest of three amounts: a flat $3,000; $15,000 minus any prior-year increases already claimed under this same rule (both pre-tax and designated Roth); or $5,000 multiplied by your years of service with the organization, minus all elective deferrals the employer made on your behalf in earlier years. Because of this formula, the practical boost is often much smaller than $3,000, and employees who have already used the lifetime $15,000 pool receive nothing further. The rule is sometimes called the special section catch-up or the years-of-service catch-up. When both this rule and the age catch-up are available, allocations go first to the 15-year rule and then to the age catch-up.
If you have at least 15 years of service with an educational organization (such as a public or private school), hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization) and it is allowed by the terms of the plan document, the limit on elective deferrals to your 403(b) ac- count is increased by the least of: 1. $3,000; 2. $15,000, reduced by the sum of: a. The additional pre-tax elective defer- rals made in prior years because of this rule, plus b. The aggregate amount of designated Roth contributions permitted for prior years because of this rule; or 3. $5,000 times the number of your years of service for the organization, minus the to- tal elective deferrals made by your em- ployer on your behalf for earlier years.
Publication 571 (2019), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
The age 50 catch-up sits on top of the limit
Three things have to be true at once, and the age is only the first. You must reach age 50 by the end of the year, which means the birthday can fall in December and still count for the whole year. Your employer's plan document has to allow catch-up contributions at all - a 403(b) plan is permitted to offer them and is not obliged to. And the ordinary elective deferrals for the plan year must already have been made in full, so the catch-up is what you add after reaching the regular limit of $19,000, never a substitute for part of it. The catch-up amount itself is $6,000 for 2019. Miss any one of the three and there is no catch-up to make, however old you are.
You are eligible to make catch-up contributions if: • You will have reached age 50 by the end of the year, • Your employer's plan document allows for catch-up contributions, and • The maximum amount of elective deferrals that can be made to your 403(b) account have been made for the plan year.
Publication 571 (2019), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
What to do when too much went in
If the actual contributions to your account - excluding any catch-up amounts - exceed your MAC, the surplus is an excess contribution. Excess contributions can trigger income tax, additional taxes, and penalties, and the specific consequences depend on whether the excess is classified as an excess annual addition or an excess elective deferral. The IRS expects you to refigure your MAC at the end of the year (or at the start of the next year) using your actual compensation and actual contributions. If your employment status or pay changes during the year, you should recalculate with revised estimates to prevent excesses from building up. Certain excess contributions can be corrected, but the correction method varies by the type of excess identified.
If your actual contributions (not including catch-up contributions) are greater than your MAC, you have an excess contribution. Excess contributions can result in income tax, addi- tional taxes, and penalties. The effect of excess contributions depends on the type of excess contribution.
Publication 571 (2019), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2018-83 (IRS)
- Elective deferral limit
The limitation under § 402(g)(1) on the exclusion for elective deferrals described in § 402(g)(3) is increased from $18,500 to $19,000.
- Catch-up limit, age 50 and over
The dollar limitation under § 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in § 401(k)(11) or § 408(p) for individuals aged 50 or over remains unchanged at $6,000.