2022 403(b) Contribution Limit
For 2022, the 403(b) Contribution Limit is $20,500 (Elective deferral limit) and +$6,500 (Catch-up limit, age 50 and over).
Effective 2022-01-01Source: Notice 2021-61 (IRS)Verified 2026-09-01
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Elective deferral limit | $19,500 | $20,500 | +$1,000 (+5.1%) |
| Catch-up limit, age 50 and over | +$6,500 | +$6,500 | +$0 (+0.0%) |
Who it applies to
Employees participating in tax-sheltered annuity plans under section 403(b) of the Internal Revenue Code
What changed this year, and why
For 2022, the elective deferral limit under section 402(g) for tax-sheltered annuity plans is $20,500, effective January 1, 2022. Participants who are age 50 or over by the end of the calendar year may make an additional catch-up contribution of $6,500 under section 414(v).
Common questions
- What is the basic elective deferral limit for tax-sheltered annuity plans in 2022?
- The limit is $20,500, effective January 1, 2022.
- Can participants age 50 or over contribute more?
- Yes. Participants who are age 50 or over by the end of the calendar year may make an additional catch-up contribution of $6,500.
The other ceiling: total contributions of 100% of pay
Beyond the cap on elective deferrals, the IRS also places an overall ceiling on the total contributions that can flow into a 403(b) account each year. This limit on annual additions counts every kind of money going into the account: your elective deferrals, your employer's nonelective contributions, and any after-tax contributions you make. For 2022, the annual additions limit is the lesser of $61,000 or 100% of your includible compensation for your most recent year of service. In other words, even if you wanted to put more into the account, total contributions cannot exceed what you earned in includible compensation. If you maintain more than one 403(b) account with the same employer, the contributions to all of those accounts must be combined against this single limit. However, if you participate in separate 403(b) plans maintained by different employers, the limits do not need to be aggregated across those employers.
The limit on an- nual additions is generally the lesser of: • $58,000 for 2021 and $61,000 for 2022, or • 100% of your includible compensation for your most recent year of service.
Publication 571 (2022), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
Two limits, and your MAC is the lesser of them
Your account is subject to two separate limits each year: the limit on annual additions and the limit on elective deferrals. Your Maximum Amount Contributable (MAC) is the lesser of these two limits. The system works this way because different contribution types trigger different calculations. If you make only elective deferrals through salary reduction, both limits apply and your MAC is the smaller amount. If you receive only employer nonelective contributions, only the limit on annual additions matters and your MAC equals that limit. If your account receives both types, you must calculate both limits and your MAC remains the lesser result. This dual-limit structure ensures that regardless of how contributions are structured, they stay within the boundaries the IRS has established for your account type.
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 (2022), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
The 15 years of service catch-up almost nobody uses
The 15-year rule provides an additional catch-up opportunity for long-service employees of certain organizations. If you have at least 15 years of service with an educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches, and your plan allows it, your elective deferral limit can be increased beyond the standard amount. The increase equals the least of three calculations, with one component being $3,000. This special catch-up is rarely used because it requires meeting specific service requirements with qualifying employers and depends on prior contribution history. The rule exists to help employees who may have deferred less earlier in their careers to make additional tax-advantaged contributions as they approach retirement.
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;
Publication 571 (2022), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
The age 50 catch-up sits on top of the limit
The age 50 catch-up contribution sits on top of your regular MAC, allowing additional tax-advantaged savings as you approach retirement. If you will be age 50 or older by the end of 2022, your employer's plan allows catch-up contributions, and you've already made the maximum regular elective deferrals, you can contribute an extra $6,500. This catch-up amount is separate from and in addition to your MAC. The maximum catch-up contribution is the lesser of $6,500 or your compensation for the year minus your non-catch-up elective deferrals. Importantly, these catch-up contributions are not counted against your regular MAC, so your total contribution capacity becomes your MAC plus your allowable catch-up amount.
Catch-up contributions aren’t counted against your MAC. Therefore, the max- imum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contribu- tions.
Publication 571 (2022), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
What to do when too much went in
When actual contributions to your account exceed your MAC, the excess must be identified and corrected to avoid tax consequences. Excess contributions fall into two categories: excess annual additions (contributions above the limit on annual additions) and excess elective deferrals (amounts above the limit on elective deferrals). An excess annual addition is included in your income for the year it is made and may subject certain accounts to an excise tax that applies annually until corrected; you cannot deduct this tax. Excess elective deferrals may be distributed by the plan if the plan permits, and corrective distributions must be made no later than April 15 of the following year, along with any allocable income. To prevent excesses, refigure your MAC at year-end or when compensation changes, using actual figures rather than estimates. Corrective actions include contributing less than the applicable limit in later years or taking permissible distributions. The key is identifying the type of excess promptly, because the correction method and tax treatment differ depending on whether it is an excess annual addition or an excess elective deferral.
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.
Publication 571 (2022), 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 2021-61 (IRS)
- Elective deferral limit
The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $19,500 to $20,500.
- Catch-up limit, age 50 and over
The dollar limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) for individuals aged 50 or over remains unchanged at $6,500.