You can generally contribute up to $24,500 to a 403(b) and another $24,500 to a 457(b) in 2026, if you are eligible for both and each plan permits that amount. The practical order is to contribute enough to the plan that offers an employer match to receive the full match, then decide where additional savings belong after checking each plan’s limits, catch-up rules, fees, investments and withdrawal provisions.
The match is not automatically shared between the accounts. Your plan documents and payroll system determine which plan receives matching contributions, the employee contribution needed to earn the full amount, eligibility and vesting requirements, and whether contributions are measured each pay period or reconciled later.
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What you can contribute to both plans in 2026
The IRS treats the basic elective-deferral limits for a 403(b) and a 457(b) as separate limits in the situations covered by its guidance. That means an employee who is eligible for both plans may be able to defer the full basic amount into each, rather than dividing one shared limit between them. The statutory limits do not require an employer to make that full amount available through its plan.
| Rule | 2026 amount or treatment | What it covers |
|---|---|---|
| 403(b) basic elective-deferral limit | $24,500 | Employee salary deferrals, subject to the plan’s terms and applicable aggregation rules |
| 457(b) basic annual limit | $24,500 | Deferrals to an eligible 457(b), subject to plan type and plan terms |
| 403(b) defined-contribution annual-additions limit | $72,000 before catch-up contributions, subject to compensation and statutory limits | Employee and employer contributions credited to the 403(b), not just salary deferrals |
| General age-50 catch-up | $8,000 when the participant and plan qualify | Additional deferrals under the applicable catch-up rules |
| Age 60–63 higher catch-up | $11,250 when applicable and permitted | The higher catch-up amount for eligible participants in that age range |
The IRS announced the 2026 figures in 2025. Check the current guidance for the tax year in which you are contributing: 403(b) contribution limits, 457(b) contribution limits and Internal Revenue Bulletin 2025-49.
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These figures answer how much the law may allow; they do not tell you how much to elect from each paycheck. Your employer may impose lower plan limits, require a particular election method, or restrict participation to eligible employees.
Start with the employer match
An employer match exists only when the plan document authorizes it. An employer could match 403(b) salary deferrals, 457(b) deferrals, both, or neither. The IRS general contribution guidance explains that matching contributions depend on the written plan terms: Retirement Topics—Contributions.
Find the match-eligible account
Obtain the current summary plan description, adoption agreement or other plan materials for each account. Look for the words “matching contribution,” “employer match,” “eligible compensation,” “true-up,” “vesting” and “eligibility.” Ask the benefits or payroll team to identify the exact account into which the match is deposited. Do not infer the answer from the fact that both plans appear on the same benefits portal.
Identify the contribution threshold
Write the match formula in a form you can use for payroll. For example, a document might say that the employer contributes a percentage of compensation when you defer a specified percentage. The formula, compensation definition, maximum match and any service or employment requirements come from your plan, not from the IRS limits. If the document uses a tiered formula, calculate the employee deferral needed to reach the top tier rather than stopping at the first tier.
Check eligibility and vesting
Some matches begin only after a waiting period, a minimum work schedule or another eligibility event. A vesting schedule can mean that a deposited match is not fully yours until you complete specified service. Confirm whether leaving employment, changing schedules or taking a leave affects the match or vesting.
Protect the match before increasing other savings
Once you know the match-eligible contribution rate, set that amount in payroll before directing extra money to the other plan. This is a practical priority because failing to make the required employee contribution can forfeit an available employer contribution. It is not a rule that every investor must follow if cash-flow needs or other obligations take precedence.
A step-by-step coordination process
- Collect both plan documents. Download the latest summary plan description, fee disclosure, investment menu, contribution election instructions and match schedule for the 403(b) and 457(b).
- Map the match. Record which plan receives the match, the employee deferral percentage or dollar amount required, the compensation definition, eligibility date, vesting schedule and any annual or per-pay-period cap.
- Set the match election. Use the employer’s payroll or benefits portal to direct enough salary to the match-eligible plan. Save the confirmation and the effective date.
- Estimate annual deferrals. Multiply the elected percentage by expected eligible pay and account for pay frequency, bonuses, overtime and any periods without pay. Use the plan’s definition of compensation, not an informal estimate.
- Allocate additional savings. After reserving the match-eligible amount, choose whether further deferrals go to the 403(b), the 457(b), or both. Compare the actual investment menu, fees, distribution rules and catch-up availability.
- Check the 403(b) annual-additions ceiling. Add expected employee and employer contributions to the 403(b), and compare the result with the applicable annual-additions limit. Employer contributions count toward this ceiling.
- Check aggregation rules. Tell the plan administrator about deferrals to other arrangements, especially other plans that may share an elective-deferral limit with the 403(b). A 457(b) is generally treated under its own limit, but the treatment of other arrangements depends on the facts.
- Confirm catch-up eligibility. Ask whether the plan offers the age-based catch-up, the age 60–63 higher amount, the special 457(b) three-year catch-up, or more than one of these. The administrator must apply the plan’s language and your service and age records.
- Review each pay statement. Verify that the correct percentage reaches the intended account, that employer contributions appear when expected and that year-to-date totals are tracking the plan limits.
- Recheck after changes. Revisit elections after a raise, a bonus, a change in work status, a plan amendment, a transfer between governmental and tax-exempt employers, or a change in the IRS limits.
How the 403(b) and 457(b) limits interact
The basic limits are generally separate
The IRS describes a basic elective-deferral limit for each plan type. Therefore, an eligible employee can potentially defer $24,500 in the 403(b) and $24,500 in the 457(b) for 2026. The combined employee deferral could exceed $24,500 when the plans are maintained by the same employer, provided the individual plan terms and other rules are satisfied.
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The 403(b) has a second ceiling
The 403(b) annual-additions limit is broader than the salary-deferral limit. It generally includes employee contributions, employer contributions and other amounts credited to the defined-contribution plan. An employer match can therefore use part of the 403(b) annual-additions capacity even though it does not reduce the basic employee elective-deferral limit in the same way.
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For 2026, the defined-contribution annual-additions limit is generally $72,000 before catch-up contributions, and compensation limits can reduce the amount that is actually permitted. The IRS’s 403(b) Fix-it Guide on annual additions explains the separate ceiling. IRS Publication 571 also describes how 403(b) contributions and limits are applied.
Other plans may affect the 403(b) calculation
Publication 571 says 403(b) elective deferrals may need to be combined with deferrals to certain other arrangements when determining the applicable limit. Disclose relevant contributions to the plan administrator instead of assuming that payroll systems can identify every outside deferral. Keep records from prior employers and any concurrent jobs that offer retirement plans.
Do not collapse both accounts into one spreadsheet line
Track at least four separate totals: 403(b) employee deferrals, 403(b) employer contributions, 457(b) deferrals and contributions to any other arrangement that may be aggregated. This prevents the common error of treating $24,500 as a single shared cap or treating the 403(b) annual-additions ceiling as if it applied to the 457(b).
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Catch-up contributions require a separate check
Catch-up rules depend on age, service, plan type, the plan’s language and, in some cases, unused prior deferral capacity. The two plans do not have identical catch-up provisions.
Age-based catch-up
Eligible participants may be able to contribute an additional age-50 catch-up amount. For 2026, the general amount is $8,000 when the applicable plan and participant qualify. A higher $11,250 amount may apply to people aged 60 through 63 in 2026 when the statutory conditions and plan provisions are satisfied. Confirm which amount the payroll system will use; reaching the age range alone does not guarantee eligibility.
Special 457(b) three-year catch-up
An eligible governmental 457(b) participant may qualify for a special catch-up during the three calendar years before the plan’s normal retirement age. The calculation is based on previously unused deferral capacity and is subject to statutory conditions. It is not simply an extra flat amount that can be added whenever desired.
The special rule can interact with the age-based rule, and the applicable treatment depends on the plan and the participant’s circumstances. Ask the administrator to determine which catch-up is available and whether the plan permits simultaneous use. The IRS discusses these rules in IRC 457(b) Deferred Compensation Plans and its comparison of tax-exempt and governmental 457(b) plans.
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A governmental 457(b) and a tax-exempt nongovernmental 457(b) can have different catch-up eligibility and other operational features. Do not transfer assumptions from a public employer’s governmental plan to a nonprofit employer’s tax-exempt plan. The plan administrator should identify the plan type in the documents and explain the available catch-up election.
Choosing where additional contributions go
After the match is secured, compare the actual plans rather than choosing by account name. Use the following decision points.
| Comparison point | What to verify in the plan materials | Decision implication |
|---|---|---|
| Employer match | Which account receives it, formula, compensation definition and maximum | Direct enough payroll deferral to capture the full available match |
| Eligibility and vesting | Entry date, service requirements and vesting schedule | Estimate how much of the employer contribution you would retain if employment changes |
| Investments and fees | Fund menu, administrative charges, transaction costs and any restrictions | Use the plan with the more suitable low-cost choices for additional savings when other factors are comparable |
| Withdrawals and distributions | Events that permit distributions, rollover options and plan-specific restrictions | Match the account to your expected need for access and future flexibility |
| Catch-up provisions | Age-based and special 457(b) catch-up availability, calculation and election process | Direct late-career contributions where the permitted catch-up creates useful capacity |
| Payroll mechanics | Election deadlines, per-pay-period limits, bonus treatment and year-end reconciliation | Avoid stopping contributions too early or missing a match on particular paychecks |
The IRS sources establish the contribution and catch-up rules, but they do not establish your employer’s investment fees, distribution options, match formula or payroll timing. Those details must come from the actual plan materials.
When the 457(b) may be attractive for extra savings
A 457(b) can provide a separate deferral opportunity for an eligible employee, which may be valuable after the match-eligible 403(b) contribution is funded. Whether it is preferable depends on the plan’s investments, fees, distribution provisions and whether the account is governmental or tax-exempt. Do not assume that a 457(b) has the same withdrawal treatment as your 403(b).
When the 403(b) may be attractive for extra savings
The 403(b) may be the logical destination when it offers the match, better investment choices or a favorable fee structure. If employer contributions are substantial, monitor the annual-additions ceiling in addition to the employee deferral limit. A high salary-deferral election can be inappropriate if combined employer and employee contributions would exceed the plan’s permitted annual additions.
When splitting contributions makes sense
Splitting additional deferrals can diversify plan features: for example, using the match-eligible account for the required contribution and the other account for a broader investment menu or a separate contribution limit. The split should be based on the written terms and your cash-flow capacity, not on an assumption that one account is universally superior.
Pay-period timing and the year-end problem
Two employees with the same annual contribution percentage can receive different total matches if one plan calculates the match each pay period and the other uses an annual calculation. A worker who reaches the elective-deferral limit early may stop making the employee contributions that trigger a per-pay-period match during later checks.
Ask how the match is calculated
- Is the match based on each paycheck, each month, a quarter or the full plan year?
- Does the employer make a year-end true-up if your annual contribution pattern missed a periodic match?
- Are bonuses and overtime included in compensation for matching purposes?
- Does the plan stop matching after you reach an annual employee-deferral limit?
- What election deadline applies to a change, and when does the change become effective?
The available IRS guidance does not determine these employer-specific mechanics. Get the answer in writing from benefits or payroll and keep the response with your annual contribution worksheet.
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Use a contribution schedule
At the start of the year, project each pay period’s employee deferral, employer match and year-to-date totals. Recalculate after raises, unpaid leave, reduced hours or a large bonus. If your employer offers a true-up, confirm when it is paid and whether you must still be employed on that date.
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Common coordination mistakes and fixes
Assuming the match follows the account with the larger balance
Problem: You contribute heavily to the 457(b) while the employer matches only 403(b) deferrals.
Fix: Identify the match source and redirect at least the required amount to that plan before allocating additional savings elsewhere.
Treating the two basic limits as one shared cap
Problem: You stop contributing after reaching $24,500 across both plans, even though the plans may have separate limits.
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Ignoring employer contributions in the 403(b) ceiling
Problem: You compare only your salary deferrals with the 403(b) elective-deferral limit.
Fix: Add employer contributions and other annual-additions amounts when checking the defined-contribution ceiling.
Assuming every 457(b) is governmental
Problem: You use governmental-plan catch-up or distribution assumptions for a tax-exempt nongovernmental plan.
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Choosing a catch-up without checking the calculation
Problem: You add an age-based amount or the special three-year amount without confirming eligibility.
Fix: Ask the administrator to calculate the permitted catch-up using your age, service, normal retirement age and unused prior capacity.
Missing a match because of payroll timing
Problem: You front-load contributions, hit a limit and receive no employee contribution match on later paychecks.
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Failing to report contributions from another employer
Problem: A second job or prior arrangement affects the 403(b) elective-deferral calculation, but the current plan administrator does not know about it.
Fix: Disclose the other arrangement and provide year-to-date records so the administrator can apply the relevant aggregation rules.
A practical worksheet for your annual review
Keep one page or spreadsheet with these fields for each plan:
- Plan name and type: 403(b), governmental 457(b) or tax-exempt nongovernmental 457(b)
- Employer match formula and the employee contribution needed for the full match
- Eligibility date and vesting schedule
- Employee deferral percentage and dollar amount per paycheck
- Expected annual employee deferrals
- Expected employer contributions
- 403(b) annual-additions total, including employer money
- 457(b) annual deferral total
- Other arrangements that may affect the 403(b) elective-deferral calculation
- Catch-up rule confirmed by the administrator
- Payroll election effective date and next review date
At least once each year, compare this worksheet with your pay statements and the latest plan documents. Reconcile discrepancies promptly; payroll corrections and excess-contribution procedures are plan-specific and can have deadlines.
Questions to ask benefits or the plan administrator
- Which plan receives the employer match?
- What employee contribution earns the maximum match, and is the formula based on each paycheck or the entire year?
- Are bonuses, overtime, differentials and leave payments included in matching compensation?
- When do I become eligible, and what portion of the match is vested?
- Does the plan offer a year-end true-up?
- What is my 403(b) annual-additions limit after expected employer contributions?
- Do my contributions to another employer’s plan affect the 403(b) elective-deferral calculation?
- Is my 457(b) governmental or tax-exempt nongovernmental?
- Which catch-up provision do I qualify for, and can the plan apply more than one?
- When do payroll changes take effect, and how are year-to-date limits monitored?
Where the official rules fit
Use the IRS pages for statutory limits and general rules, then use your employer’s plan documents for the decisions the IRS cannot answer. The principal references are the IRS pages on 403(b) limits, 457(b) limits, employer contributions, Publication 571, IRC 457(b) plans, the governmental versus tax-exempt 457(b) comparison, and the 403(b) annual-additions Fix-it Guide.
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