403(b) and 457(b) Catch-Up Contributions: The 2026 Rules

You're past 50, retirement is in sight, and you want to put more away while the paychecks are still coming. That is what catch-up contributions are for, and public employees have more of them than almost anyone. There is a catch-up at age 50, a larger one at ages 60 through 63, a special 457(b) catch-up near retirement, and a 15-year rule for long-serving 403(b) savers.

A new rule also took effect in 2026: some higher earners must now make catch-up contributions as Roth. In this guide, I cover the 2026 limits for 403(b), 457(b), and TSP savers, how each catch-up works, and who the Roth rule affects. I also explain why many teachers and public employees outside Social Security are exempt from it.

What Are the 2026 Catch-Up Contribution Limits?

For 2026, the basic employee limit for a 403(b), a governmental 457(b), a 401(k), or the Thrift Savings Plan is $24,500, according to the IRS. Age-based catch-ups sit on top of that:

• Age 50 and older: an extra $8,000, for a total of $32,500. You qualify for the whole year if you turn 50 by December 31.
• Ages 60 through 63: an extra $11,250 in place of the $8,000, for a total of $35,750. This applies in the years you turn 60, 61, 62, or 63, if your plan allows it. At 64, you go back to the regular catch-up.
• IRAs: the limit is $7,500, plus a $1,100 catch-up at age 50.

Source: IRS news release IR-2025-111 and Notice 2025-67. The two-plan row assumes your employer offers both plans and each plan allows catch-ups.

The Public Employee Advantage: Two Plans, Two Limits

Here is the part many educators miss. A 403(b) and a governmental 457(b) have separate limits. If your employer offers both, you can fill both. A 401(k) and a 403(b) share one limit, but the 457(b) stands on its own.

Federal employees have one plan, the TSP, so the single-plan limits apply. For more on using two plans together, see my earlier post on maxing out both a 403(b) and a 457(b).

The 457(b) Special Three-Year Catch-Up

Governmental 457(b) plans can offer a second kind of catch-up that has nothing to do with turning 50. In the three years before your plan's normal retirement age, you may be able to contribute up to twice the annual limit. For 2026, that is as much as $49,000.

There is a condition. The extra room is limited to amounts you could have contributed in earlier years but didn't. If you have always maxed out your 457(b), you have no unused room to claim.

You also can't stack it with the age-based catch-up in the same plan. In any one year, you use whichever gives you the larger limit. Your plan administrator has to calculate your unused room, so start that conversation a year or two before you plan to use it. The IRS 457(b) page has the details.

The 403(b) 15-Year Rule

A 403(b) plan can offer its own extra catch-up for long service. If you have at least 15 years with the same qualifying employer, such as a public school system, you may be able to add up to $3,000 a year, with a $15,000 lifetime cap. The IRS sets out the full formula.

Two cautions. First, the formula favors people who saved little in earlier years, so steady savers often don't qualify. Second, when you are eligible for both, the law counts your extra dollars toward the 15-year catch-up first and the age-50 catch-up second. Ask your plan administrator to run the calculation.

The New Roth Rule for Catch-Up Contributions

Since January 1, 2026, higher earners have lost the choice between pre-tax and Roth for age-based catch-ups. If your prior-year wages from the employer that sponsors the plan were more than $150,000, your catch-up contributions must go in as Roth. That means no tax deduction now and tax-free withdrawals later.

The details, from the IRS and the final regulations:

• It covers 401(k), 403(b), and governmental 457(b) plans, and the TSP. IRAs are not affected.
• Your first $24,500 can still be pre-tax. Only the catch-up portion must be Roth.
• It applies to the age-50 and age 60–63 catch-ups only. The 457(b) three-year catch-up and the 403(b) 15-year catch-up are not covered.
• The test looks at one employer. Only wages from the employer sponsoring the plan count.
• A plan with no Roth option is a problem. If the rule applies to you and your plan doesn't offer Roth contributions, you generally can't make age-based catch-ups.

For federal employees, the TSP says the switch to Roth happens automatically for most people once they pass the regular limit.

Why Many Teachers and Public Employees Are Exempt

This is the detail that matters most for my clients. The $150,000 test uses Social Security wages, the amount in Box 3 of your W-2. It does not use your total salary.

Many teachers, professors, police officers, and firefighters work for employers that don't participate in Social Security. Their Box 3 is empty. Under the final regulations, a person with no Social Security wages from the employer in the prior year is not subject to the Roth requirement. Wages that are subject only to Medicare tax don't count either.

Governmental plans also have extra time to formally adopt the final regulations, so employers may handle 2026 a little differently. Check Box 3 on your last W-2, then confirm with your payroll or benefits office.

Is a Roth Catch-Up a Bad Deal?

Not necessarily. You do give up a deduction today, and for someone in the 24% bracket, an $8,000 Roth catch-up costs about $1,920 more in federal tax this year than a pre-tax one.

But public servants with pensions often have high taxable income in retirement. A pension, Social Security, and required withdrawals from pre-tax accounts can stack up quickly. Roth dollars don't add to that pile. Roth accounts in workplace plans also have no required minimum distributions during your lifetime.

For many of my clients, some Roth savings late in a career is a useful hedge. If you want to think through the trade-off, see 2026 Roth Conversion Tax Planning for Public Servants and How to Reduce or Delay RMDs from Pre-Tax Accounts.

How to Put This to Work

1. List your plans. Find out whether your employer offers a 403(b), a 457(b), or both, and which catch-ups each plan allows.
2. Check Box 3 of your W-2. If it was over $150,000 in 2025, your 2026 age-based catch-up must be Roth.
3. Ask about a Roth option. If the rule applies to you and your plan has no Roth feature, you may be shut out of catch-ups.
4. Set your payroll election early. Catch-ups come out of your paychecks, so a January change gives you the full year to reach the limit.
5. Plan the special catch-ups in advance. The 457(b) three-year catch-up and the 15-year rule both need a calculation from your plan administrator.

FAQ: Catch-Up Contributions for Public Employees

Conclusion

Catch-up contributions are one of the best tools public employees have in the last decade of work. A second plan, a higher limit at ages 60 through 63, and two special catch-ups can add up to a lot of extra savings. The new Roth rule changes the tax treatment for some higher earners, but many educators and public servants outside Social Security are not affected.

Check your W-2, learn what your plans allow, and set your elections early in the year. If you'd like help deciding how much to save and whether Roth or pre-tax fits your situation, I'd welcome the conversation.

Authoritative references: IRS news release IR-2025-111 and Notice 2025-67 (2026 limits); IRS retirement topics pages on catch-up contributions, 403(b) contribution limits, and 457(b) contribution limits; Treasury and IRS final regulations on catch-up contributions (Federal Register, September 16, 2025); Internal Revenue Code section 457(b)(3); TSP.gov contribution limits.