What is the elective deferral limit for a section 403(b) plan in 2025?

It is $23,500. Notice 2024-80 states that figure as the limitation under section 402(g) on the exclusion for elective deferrals, increased for 2025. It caps what an employee elects to defer out of pay for the year. The notice states this as one limitation covering the elective deferrals described in section 402(g), not as a figure written separately for each kind of plan.

How much extra can I contribute if I am aged 50 or over?

Notice 2024-80 states the catch-up contribution limitation under section 414(v) for an applicable employer plan, which generally applies to individuals aged 50 or over, as remaining $7,500 for 2025. The notice publishes it in its own sentence as an amount separate from the $23,500 elective deferral limitation, and it applies to plans other than the SIMPLE arrangements the notice addresses on their own.

Why does the notice not name section 403(b) when it states this limit?

Because the notice organises the amounts by Code section. The elective deferral figure is published as the limitation under section 402(g) on the exclusion for the elective deferrals described in that section, and $23,500 is the amount it gives for 2025. The only place Notice 2024-80 names section 403(b) directly is where it states the limitation for a safe harbor deferral-only plan, which is a different provision.

Did the section 403(b) contribution limit go up for 2025?

Yes. Notice 2024-80 states the section 402(g) elective deferral limitation as increased for 2025, and gives the new figure as $23,500. The section 414(v) catch-up limitation for individuals aged 50 or over did not move: the notice states it as remaining $7,500. The notice separates the amounts it increased from the amounts it states as unchanged, and these two fall on opposite sides of that split.

If I contribute to two employer plans, do I get the limit twice?

Notice 2024-80 states the section 402(g) limitation once, as a single figure on the exclusion for elective deferrals rather than as a per-plan allowance. It states the limitation on deferrals under section 457 separately, and for 2025 that separate limitation carries the same $23,500 amount. The notice publishes no combined figure across plan types.

Does the limit cover contributions my employer makes?

No. The $23,500 figure is the limitation under section 402(g) on the exclusion for elective deferrals, which is what the employee elects to defer. Notice 2024-80 adjusts the overall limitation for defined contribution plans under section 415(c) in a separate sentence with its own amount. The two limitations are published as distinct items in the same notice.

Is there a higher catch-up amount for ages 60 through 63?

Notice 2024-80 states a separate and higher catch-up limitation under section 414(v) for individuals who attain ages 60 through 63 during 2025. That amount is verified on the catch-up contribution page for this year rather than here, because the figures verified for this page are the section 402(g) elective deferral limitation and the section 414(v) catch-up limitation for individuals aged 50 or over.

Where does the 2025 limit come from?

Notice 2024-80, the annual IRS notice of amounts relating to retirement plans and IRAs as adjusted for changes in cost-of-living. Section 415 of the Internal Revenue Code provides for limitations on benefits and contributions under qualified retirement plans, and section 415(d) requires the Secretary of the Treasury to adjust them annually for cost-of-living increases. These figures are adjusted at the same time and in the same manner as the limitation of section 415(b), after rounding rules are applied.

2025 403(b) Contribution Limit

Name: 2025 403(b) Contribution Limit
Creator: IRS

For 2025, the 403(b) Contribution Limit is $23,500 (Elective deferral limit) and +$7,500 (Catch-up limit, age 50 and over).

Elective deferral limit$23,500

Catch-up limit, age 50 and over+$7,500

Effective 2025-01-01Source: Notice 2024-80 (IRS)Verified 2026-09-01

Compared with 2024

Item	2024	2025	Change
Elective deferral limit	$23,000	$23,500	+$500 (+2.2%)
Catch-up limit, age 50 and over	+$7,500	+$7,500	+$0 (+0.0%)

Who it applies to

Employees who make elective deferrals under a plan described in section 403(b), and the employers and plan administrators who apply the annual limitation to those deferrals. The notice writes the limitation by Code section rather than by plan type, stating it under section 402(g) for the elective deferrals described in that section. The catch-up figure applies to participants aged 50 or over.

What changed this year, and why

Notice 2024-80 sets the limitation under section 402(g) on the exclusion for elective deferrals at $23,500 for 2025, an increase over the amount published for the prior year. That is the limitation that governs elective deferrals under a plan described in section 403(b). The catch-up contribution limitation under section 414(v) for individuals aged 50 or over is stated as remaining $7,500 for 2025.

Common questions

What is the elective deferral limit for a section 403(b) plan in 2025?: It is $23,500. Notice 2024-80 states that figure as the limitation under section 402(g) on the exclusion for elective deferrals, increased for 2025. It caps what an employee elects to defer out of pay for the year. The notice states this as one limitation covering the elective deferrals described in section 402(g), not as a figure written separately for each kind of plan.
How much extra can I contribute if I am aged 50 or over?: Notice 2024-80 states the catch-up contribution limitation under section 414(v) for an applicable employer plan, which generally applies to individuals aged 50 or over, as remaining $7,500 for 2025. The notice publishes it in its own sentence as an amount separate from the $23,500 elective deferral limitation, and it applies to plans other than the SIMPLE arrangements the notice addresses on their own.
Why does the notice not name section 403(b) when it states this limit?: Because the notice organises the amounts by Code section. The elective deferral figure is published as the limitation under section 402(g) on the exclusion for the elective deferrals described in that section, and $23,500 is the amount it gives for 2025. The only place Notice 2024-80 names section 403(b) directly is where it states the limitation for a safe harbor deferral-only plan, which is a different provision.
Did the section 403(b) contribution limit go up for 2025?: Yes. Notice 2024-80 states the section 402(g) elective deferral limitation as increased for 2025, and gives the new figure as $23,500. The section 414(v) catch-up limitation for individuals aged 50 or over did not move: the notice states it as remaining $7,500. The notice separates the amounts it increased from the amounts it states as unchanged, and these two fall on opposite sides of that split.
If I contribute to two employer plans, do I get the limit twice?: Notice 2024-80 states the section 402(g) limitation once, as a single figure on the exclusion for elective deferrals rather than as a per-plan allowance. It states the limitation on deferrals under section 457 separately, and for 2025 that separate limitation carries the same $23,500 amount. The notice publishes no combined figure across plan types.
Does the limit cover contributions my employer makes?: No. The $23,500 figure is the limitation under section 402(g) on the exclusion for elective deferrals, which is what the employee elects to defer. Notice 2024-80 adjusts the overall limitation for defined contribution plans under section 415(c) in a separate sentence with its own amount. The two limitations are published as distinct items in the same notice.
Is there a higher catch-up amount for ages 60 through 63?: Notice 2024-80 states a separate and higher catch-up limitation under section 414(v) for individuals who attain ages 60 through 63 during 2025. That amount is verified on the catch-up contribution page for this year rather than here, because the figures verified for this page are the section 402(g) elective deferral limitation and the section 414(v) catch-up limitation for individuals aged 50 or over.
Where does the 2025 limit come from?: Notice 2024-80, the annual IRS notice of amounts relating to retirement plans and IRAs as adjusted for changes in cost-of-living. Section 415 of the Internal Revenue Code provides for limitations on benefits and contributions under qualified retirement plans, and section 415(d) requires the Secretary of the Treasury to adjust them annually for cost-of-living increases. These figures are adjusted at the same time and in the same manner as the limitation of section 415(b), after rounding rules are applied.

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

The limit on annual additions caps the total dollars flowing into a 403(b) account each year - elective deferrals, employer nonelective contributions, and after-tax contributions combined. For 2025, the ceiling is the lesser of $70,000 or 100% of your includible compensation for your most recent year of service. Includible compensation is your taxable pay from the employer over a full year of service, reduced by certain items such as the cost of any incidental life insurance included in an annuity contract. Because the cap is expressed as a percentage of pay, highly compensated participants may find that their salary, rather than the $70,000 dollar figure, is the binding constraint. If you participate in more than one 403(b) account maintained by the same employer, you must combine the contributions across all of them when testing this limit. However, if you work for different employers that each maintain separate 403(b) plans, you do not combine those amounts for the annual-additions test. The limit on annual additions is one of the two components that determine your overall Maximum Amount Contributable.

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: • $69,000 for 2024 and $70,000 for 2025, or • 100% of your includible compensation for your most recent year of service.
Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)

Two limits, and your MAC is the lesser of them

The MAC, or Maximum Amount Contributable, is the IRS's term for the overall ceiling on what may go into a participant's 403(b) account in a single year. This ceiling is not a single number; it is the lesser of two separate limits that the IRS imposes on the account. The first is the limit on annual additions, which caps the total of all contributions - elective deferrals, employer nonelective contributions, and after-tax employee contributions combined. The second is the limit on elective deferrals, which caps only the salary-reduction amounts the participant chooses to defer. Which of the two limits actually binds depends on the mix of contributions flowing into the account during the year. If the participant makes only salary-reduction deferrals, both limits must be calculated and the MAC is the smaller result. If the participant receives only employer nonelective contributions, only the annual-additions limit applies. Catch-up contributions for participants age 50 and over are not counted against the MAC; they sit on top of it, so the true maximum contribution in a year can exceed the MAC by the amount of allowable catch-up.

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 (2025), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)

The 15 years of service catch-up almost nobody uses

The 15-year rule, also called the special section 403(b) catch-up or years-of-service catch-up, is a little-used provision that lets certain long-tenured employees defer more than the standard elective-deferral limit. To qualify, you must have at least 15 years of service with a qualifying employer such as an educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches. The plan document must also permit the catch-up. The extra amount you may defer is the least of three figures: $3,000; $15,000 reduced by any prior-year catch-ups already taken under this rule; or $5,000 times your years of service minus total employer elective deferrals in prior years. The rule can push deferrals as high as $26,500 for 2025, which is $3,000 above the $23,500 general limit. The reason almost nobody uses this catch-up is that it interacts with the age 50 catch-up: when both are available, amounts must be applied first under the 15-year rule and then under the age 50 catch-up, and the lifetime cap of $15,000 in extra deferrals makes the benefit small for many participants who have already used it in prior years.

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. If you qualify for the 15-year rule (sometimes referred to as the “special section 403(b) catch-up” or the “years-of-service catch-up”), your elective deferrals under this limit can be as high as $26,000 for 2024 and $26,500 for 2025.
Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)

The age 50 catch-up sits on top of the limit

If you will be age 50 or older by the end of 2025, the IRS allows you to make additional catch-up contributions to your 403(b) account on top of the regular elective deferral limit. These catch-up contributions are not counted against your maximum amount contributable (MAC), meaning the total you can have contributed to your 403(b) account is your MAC plus your allowable catch-up contributions. To be eligible for the age 50 catch-up, three conditions must be met: you must reach age 50 by the end of the year, your employer's plan document must allow catch-up contributions, and you must have already made the maximum amount of regular elective deferrals allowed for the plan year. For 2025, the maximum catch-up contribution amount is $7,500, or if less, the excess of your compensation for the year over your non-catch-up elective deferrals. If your employer maintains multiple types of retirement plans (such as qualified plans, 403(b) plans, SARSEP plans, or SIMPLE plans), the total catch-up contributions across all these plans cannot exceed the annual limit of $7,500.

Catch-up contributions aren’t counted against your MAC. Therefore, the maximum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contri- butions.
Publication 571 (2025), Tax-Sheltered Annuity Plans (403(b) Plans) (IRS)

What to do when too much went in

When contributions exceed your MAC, you have excess contributions that can trigger income tax, additional taxes, and penalties. At year-end or early the following year you should refigure your MAC using actual compensation and actual contributions to determine if an excess exists. If your employment status or pay changes during the year, refigure promptly using revised estimates to prevent excesses. Excess contributions fall into categories - excess annual additions or excess elective deferrals - and the correction method depends on which type you have. Certain excess contributions can be corrected by distributing them, but the tax treatment varies. Catch-up contributions are excluded from the excess calculation, so only non-catch-up amounts are tested against the MAC. The key is monitoring contributions throughout the year rather than discovering an excess after the fact, because correction options may be limited and tax consequences can be significant.

Excess Contributions 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. This chapter discusses excess contributions to your 403(b) account. How Do I Know if I Have Excess Contributions? At the end of the year or the beginning of the next year, you should refigure your MAC based on your actual com- pensation and actual contributions made to your account.
Publication 571 (2025), 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 2024-80 (IRS)

Elective deferral limit: The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3), which includes elective deferrals made to the Thrift Savings Plan, is increased from $23,000 to $23,500.
Catch-up limit, age 50 and over: The 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) that generally applies for individuals aged 50 or over remains $7,500.

Fetched 2026-08-27T13:17:52.001Z
Verified 2026-09-01
Stored text sha256 e1ceed9c8ffc6a845a58c841c5abbb13297c02441ff8757f48ce4537afc762a4