Hong Life CalculatorsUnderstanding the 403(b) calculator — concept and principle
This calculator checks how much you can defer into a 403(b) plan in 2026, including the age catch-up and the special 15-year catch-up, adds your employer's contribution and projects the balance at retirement. Use it if you work for a public school, hospital, church or other eligible employer.
How it is calculated
- 2026 base elective deferral limit: $24,500.
- Age catch-up: $8,000 at age 50 or over at year-end, or $11,250 at ages 60–63.
- 15-year catch-up (15+ years with a qualifying employer, if the plan allows): the lesser of $3,000; $15,000 minus earlier 15-year catch-ups; or $5,000 × years of service minus earlier elective deferrals to that employer.
- Maximum deferral = $24,500 + 15-year catch-up + age catch-up, but not more than your pay.
- Annual additions (your deferrals plus employer money) are limited to the lesser of $72,000 or your includible pay.
- Projection: balance × (1 + r)^t + yearly contributions × ((1 + r)^t − 1) ÷ r.
The principle
A 403(b) lets employees of certain tax-exempt organisations save for retirement with tax advantages. The IRS sets yearly limits; catch-ups let older or long-serving employees save more. Deferrals above the base limit count first toward the 15-year catch-up and then toward the age catch-up. The projection is a future value: the balance compounds and each year's contributions form a growing annuity.
Worked example
Default inputs: pay $85,000, age 52, planned deferral $30,000, 15-year catch-up yes, 16 years of service, earlier deferrals $70,000, earlier 15-year catch-ups $0, employer 4%, balance $150,000, return 6%, 13 years.
- 15-year catch-up = min(3,000; 15,000 − 0; 5,000 × 16 − 70,000 = 10,000) = $3,000.
- Age catch-up (50+) = $8,000. Maximum = 24,500 + 3,000 + 8,000 = $35,500.
- Your $30,000 is within the limit: allowed deferral $30,000, nothing above the limit.
- Employer = 4% × 85,000 = $3,400; total in this year $33,400, under the $72,000 additions limit.
- Projection: 150,000 × 1.06¹³ + 33,400 × (1.06¹³ − 1) ÷ 0.06 ≈ $950,603.
| Elective deferral you plan for 2026 (USD) | Your allowed deferral for 2026 (USD) |
|---|---|
| 7,500 | 7,500 |
| 15,000 | 15,000 |
| 22,500 | 22,500 |
| 30,000 | 30,000 |
| 37,500 | 35,500 |
| 45,000 | 35,500 |
| 60,000 | 35,500 |
How to read the result
"Above the limit" should be 0; any excess deferral must be corrected with the plan. The projection is a planning figure in future dollars, not adjusted for inflation, and assumes the same contribution and a steady return every year. Small changes in the return assumption change the result a lot over long periods.
Common mistakes
- Assuming every 403(b) offers the 15-year catch-up; the plan must allow it.
- Using years of service with all employers instead of the current qualifying employer.
- Forgetting that the employer's contributions count toward the $72,000 additions limit.
Frequently asked questions
What is the 403(b) limit for 2026?
$24,500 in elective deferrals, plus catch-ups if you qualify.
Can I use both the 15-year and the age catch-up?
Yes, if eligible; excess deferrals count toward the 15-year catch-up first.
Sources: IRS, news release IR-2025-111 (13 Nov 2025), 2026 contribution limits · IRS, "Retirement topics – 403(b) contribution limits"