The Basics
What Is a 403(b) Plan?
A 403(b) plan — also called a TSA or Tax-Deferred Annuity — is a defined contribution retirement plan for employees of:
🏫 Public Schools & Universities
K–12 teachers, administrators, college faculty and staff at public institutions. The largest 403(b) segment by number of participants.
🏥 Hospitals & Healthcare
Nurses, doctors, administrators at nonprofit hospitals (most U.S. hospitals are technically nonprofits under 501(c)(3)).
🏛️ Nonprofit Organizations
Any 501(c)(3) organization — charities, foundations, cultural institutions, social services agencies.
⛪ Religious Organizations
Churches and other religious organizations have special 403(b) rules with some additional flexibility on plan administration.
💡 Quick Check: Look at your pay stub. If it shows "403(b)" deductions, you have this plan. If it shows "401(k)" you have a 401(k). Some employees — particularly at hospitals affiliated with universities — may have access to both.
2026 Contribution Limits
403(b) Contribution Limits for 2026
The IRS sets 403(b) limits identically to 401(k) limits since the SECURE Act. There are up to three simultaneous catch-up opportunities for older workers:
| Age | Annual Limit | How to Use |
|---|---|---|
| Under 50 | $24,500 | Standard pre-tax or Roth 403(b) contributions |
| Age 50+ | $32,500 (+$8,000) | Standard + Age 50+ catch-up contribution |
| Ages 60–63 (SECURE 2.0) | $35,750 (+$11,250) | Standard + Super catch-up (replaces standard catch-up) |
| 15-Year Rule (any age) | +$3,000/yr (up to $15,000 lifetime) | 403(b)-only extra catch-up for 15+ year employees |
⚠️ SECURE 2.0 Super Catch-Up: The ages 60–63 super catch-up ($11,250 extra instead of $8,000) took effect in 2025. If you turn 60, 61, 62, or 63 in 2026, you qualify. At 64, you revert to the standard $8,000 catch-up.
Comparison
403(b) vs. 401(k): Key Differences
| Feature | 403(b) | 401(k) | Verdict |
|---|---|---|---|
| Contribution Limit (2026) | $24,500 | $24,500 | Equal |
| Age 50+ Catch-Up | $8,000 total | $8,000 total | Equal |
| Ages 60–63 Super Catch-Up (SECURE 2.0) | $11,250 extra | $11,250 extra | Equal |
| 15-Year Rule Extra Catch-Up | ✅ Yes (up to $3,000/yr) | ❌ No | 403(b) advantage |
| Employer Match Available | ✅ Usually | ✅ Usually | Equal |
| Roth Option | ✅ Yes (Roth 403(b)) | ✅ Yes (Roth 401(k)) | Equal |
| Investment Options | Often limited (annuities) | Broader (mutual funds) | 401(k) often better |
| Typical Employer Types | Schools, hospitals, nonprofits | Private companies, some gov. | Different |
| Plootus Support | ✅ Full optimization | ✅ Full optimization | Equal |
Calculator
403(b) Savings Projector
🧮 How Much Will My 403(b) Be Worth at Retirement?
Frequently Asked Questions
- IRS, Publication 571: Tax-Sheltered Annuity Plans (irs.gov/pub571)
- IRS, Section 403(b) Tax-Sheltered Annuity Plans
- IRS, Retirement Plan Contribution Limits 2026 (irs.gov)
- IRS, SECURE 2.0 Act provisions (2023)
- GAO, 403(b) Plans: DOL Could Improve Oversight of Plan Fees, GAO-23-105403
- TIAA Research, 403(b) Plan Participant Behavior
- Plootus Research 2026
