2024 403(b) Contribution Limit
For 2024, the 403(b) Contribution Limit is $23,000 (Elective deferral limit) and +$7,500 (Catch-up limit, age 50 and over).
Effective 2024-01-01Source: Notice 2023-75 (IRS)Verified 2026-09-01
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Elective deferral limit | $22,500 | $23,000 | +$500 (+2.2%) |
| Catch-up limit, age 50 and over | +$7,500 | +$7,500 | +$0 (+0.0%) |
Who it applies to
Employees participating in tax-sheltered annuity plans under section 403(b), offered by public schools, tax-exempt organizations, and certain governmental employers
What changed this year, and why
Effective January 1, 2024, the elective deferral limit for tax-sheltered annuity plans under section 403(b) increased to $23,000. The catch-up contribution limit for participants age 50 or over remains $7,500.
Common questions
- Can participants age 50 or over contribute more than the base limit?
- Participants age 50 or over may make an additional catch-up contribution of $7,500 on top of the $23,000 base deferral limit.
- Did the catch-up contribution limit change for 2024?
- No. The catch-up limit remains $7,500 for 2024.
Every amount on this page is a published figure rather than yours. The 403(b) contribution planner takes the number you enter and works it out against them, showing which published figure it used.
The other ceiling: total contributions of 100% of pay
In addition to the elective deferral ceiling, the IRS imposes a second cap on 403(b) accounts called the limit on annual additions. This rule restricts the total of all contributions flowing into the account in a year—elective deferrals, employer nonelective contributions, and after-tax employee contributions combined. For 2024, the limit is the lesser of $69,000 or 100% of the participant's includible compensation for their most recent year of service. In practice, most participants who are not highly compensated will find that the dollar cap is the binding constraint, because reaching 100% of compensation would require contributions equal to all of their pay. When a participant maintains more than one 403(b) account with the same employer, the contributions to all of those accounts must be added together and measured against this single ceiling. However, if the participant works for different employers, each employer's plan applies its own limit separately; the amounts do not need to be combined across unrelated employers. This overall ceiling works alongside the $23,000 elective deferral limit (plus the $7,500 catch-up amount for those age 50 and over), which caps only the salary-reduction portion of contributions.
Limit on Annual Additions The first component of MAC is the limit on annual addi- tions. This is a limit on the total contributions (elective de- ferrals, nonelective contributions, and after-tax contribu- tions) that can be made to your 403(b) account. The limit on annual additions is generally the lesser of: • $66,000 for 2023 and $69,000 for 2024, or • 100% of your includible compensation for your most recent year of service.
Publication 571 (2024), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
Two limits, and your MAC is the lesser of them
Two separate limits govern how much can go into your account each year: the limit on annual additions and the limit on elective deferrals. Your Maximum Amount Contributable, or MAC, is whichever of these two limits is lower. The limit on annual additions caps all contributions combined - your salary-reduction deferrals, employer nonelective contributions, and after-tax employee contributions - at the lesser of a fixed dollar amount or your compensation. The limit on elective deferrals caps only your salary-reduction contributions at a separate dollar ceiling. If both types of contributions are made in the same year, you must calculate both limits and your MAC is the lesser of the two. If only nonelective employer contributions are made, only the annual additions limit applies. The MAC determines whether you have excess contributions that must be corrected, and it does not include any catch-up amounts you may be eligible to add.
Elective deferrals only. If the only contributions made to your 403(b) account during the year were elective defer- rals made under a salary reduction agreement, you will need to figure both of the limits. Your MAC is the lesser of the two limits.
Publication 571 (2024), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
The 15 years of service catch-up almost nobody uses
The special catch-up provision for long-service employees is available only to those who have at least 15 years of service with a qualifying employer - such as a school, hospital, home health service agency, health and welfare service agency, church, or associated organization - and only when the plan document allows it. If both conditions are met, the elective deferral limit is increased by the least of three amounts, the smallest of which involves a lifetime cap that is reduced by prior catch-up deferrals already used under this rule. Despite the potential for higher deferrals, most participants never use this provision because they work for employers that aren't in the eligible categories, their plans don't permit it, or the lifetime cap has already been fully used. When a participant qualifies for both this service-based catch-up and the catch-up for those reaching the later age threshold in the same year, amounts must be allocated first under the service-based rule before any later-age catch-up is applied.
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) account is increased by the least of: 1. $3,000; 2. $15,000, reduced by the sum of: a. The additional pre-tax elective deferrals made in prior years because of this rule, plus b. The aggregate amount of designated Roth contri- butions 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 total elective deferrals made by your employer on your behalf for earlier years.
Publication 571 (2024), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
The age 50 catch-up sits on top of the limit
Participants who will reach age 50 by the end of the year may make additional catch-up contributions on top of the regular elective deferral limit, provided the plan allows it and the regular limit has already been reached. For 2024 the catch-up amount is $7,500, though it cannot exceed the excess of your compensation over your non-catch-up elective deferrals. These catch-up amounts are not counted against your MAC, meaning the most you can have contributed in a year equals your MAC plus any allowable catch-up contributions. The catch-up cap applies across all retirement plans maintained by the same employer, not just the tax-sheltered annuity. If you also qualify for the long-service catch-up, amounts are allocated first under the service-based rule and only then as age-50 catch-up.
If you will be age 50 or older by the end of the year, you may also be able to make additional catch-up contribu- tions. These additional contributions can’t be made with after-tax employee contributions. 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. The maximum amount of catch-up contributions is the lesser of: • $7,500 for 2023 and 2024; or • The excess of your compensation for the year, over the elective deferrals that aren’t catch-up contribu- tions.
Publication 571 (2024), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)
What to do when too much went in
When total contributions to your account (excluding catch-up amounts) exceed your MAC, you have an excess contribution. The IRS treats excess contributions seriously: they can trigger income tax, additional taxes, and penalties. The tax consequences depend on the type of excess. An excess annual addition - when contributions exceed the annual additions ceiling - is included in your income for the year and may also be subject to an excise tax each year it remains in a custodial account invested in mutual funds. An excess elective deferral - when salary-reduction contributions exceed the deferral limit - may be distributed by the plan if the plan document permits it. You should refigure your MAC at year-end using actual compensation and contributions. Excess contributions can be corrected by contributing less than the limit in later years or by making permissible distributions from the account.
If your actual contributions (not including catch-up contri- butions) are greater than your MAC, you have an excess contribution. Excess contributions can result in income tax, additional taxes, and penalties. The effect of excess contributions depends on the type of excess contribution.
Publication 571 (2024), 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 2023-75 (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 $22,500 to $23,000.
- 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 $7,500.