How much can I contribute to a 457(b)?
Last updated August 2026
Short answer
Public sector employees are routinely offered two plans and told nothing about how the limits interact, which leaves a great deal of tax-advantaged room unused every year.
The 2026 figures
$24,500 in elective deferrals, covering pre-tax and any Roth contributions together.
$8,000 age-50 catch-up in governmental plans that offer it, and $11,250 at ages 60 to 63.
Non-governmental 457(b) plans generally do not offer the age-based catch-up at all.
A limit that stands alone
401(k) and 403(b) deferrals are aggregated with each other. A 457(b) is not aggregated with either.
So a teacher with both a 403(b) and a 457(b) can defer $24,500 into each in 2026.
With catch-ups, someone over 50 with both plans has more than $65,000 of annual deferral room, which is larger than any private sector employee can reach without a mega backdoor arrangement.
The three-year catch-up
Available in each of the three years before the plan's normal retirement age, allowing up to twice the annual limit.
The extra amount is capped by how much you failed to contribute in prior years, so it restores unused room rather than creating new room.
It cannot be used alongside the age-50 catch-up in the same year, and the plan applies whichever is larger.
Try it in Walnut
Walnut connects to brokerage accounts and analyses what you hold, so plan balances and personal accounts can be read as one portfolio where the recordkeeper allows it.
Employer contributions behave differently
In a 401(k), an employer match sits on top of your deferral limit.
In a 457(b), employer contributions generally count toward the same annual limit, so a match reduces what you can defer yourself.
That is an unusual rule and it is easy to trip over when applying 401(k) intuition to a plan that looks similar.
Which to fill first
Capture any employer match wherever it exists, before optimising anything else.
If you might retire before 59.5, favour the 457(b), because its balance is reachable without the 10% additional tax after you separate.
If the plan is non-governmental, weigh the deferral against the employer's financial position, since the assets remain subject to its creditors.
Where the money goes if you cannot fill both
A match, wherever it sits, comes first, because nothing else returns that much immediately.
After that the 457(b) suits money you may need before 59.5, and the 403(b) suits money you will not.
Filling neither completely is the ordinary case, so deciding which gets the marginal dollar matters more than knowing both ceilings.
Sources
The 2026 deferral and catch-up figures are from IRS Notice 2025-67. Plan rules, the special three-year catch-up and the coordination rules are published at IRC 457(b) deferred compensation plans. Walnut is informational and is not an investment adviser. This guide is educational and not personalized tax advice.
FAQ
How much can I contribute to a 457(b) in 2026?
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$24,500, with an $8,000 catch-up from age 50 and $11,250 at ages 60 to 63 in governmental plans that permit it. A special three-year catch-up may allow up to twice the annual limit in the three years before normal retirement age.
Is it really separate from my 403(b) limit?
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Yes. This is the most valuable and least known fact about the plan. An employee with both can defer $24,500 into each in 2026, for $49,000 total before any catch-up.
How does the three-year catch-up work?
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In each of the three years before the plan's normal retirement age, you may contribute up to twice the annual limit, limited to the amount you under-contributed in earlier years. The plan calculates the unused room from your history.
Can I use both catch-ups in one year?
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No. The three-year catch-up and the age-50 catch-up cannot be combined, and the plan applies whichever gives the larger figure for that year.
Do employer contributions count against the limit?
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In a 457(b) they generally do, which differs from a 401(k) where the match sits on top. An employer contribution therefore reduces what you can defer yourself, so check the plan document before assuming otherwise.
Does a 457(b) affect my IRA contribution?
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Not the amount, which remains $7,500 for 2026. Participation does count as workplace plan coverage for the traditional IRA deduction phase-outs.
What if my employer offers a 401(k) as well?
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The 457(b) limit is separate from that too. What is shared is the limit across 401(k) and 403(b) plans, which are aggregated with each other but not with a 457(b).
Are the catch-ups available in non-governmental plans?
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The age-50 catch-up is generally not available in non-governmental 457(b) plans, while the three-year catch-up is. That is one more way the two versions of this plan differ in practice.
If I cannot fill both plans, which gets the money?
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Any match first. After that, the 457(b) suits money you might need before 59.5 because of its penalty-free access, and the 403(b) suits money you will not touch until later.
Does the three-year catch-up apply automatically?
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No. It has to be offered by the plan and elected, and the extra room depends on contributions you failed to make in earlier years. The administrator calculates it, so it needs a conversation rather than an assumption.
What if I have a 457(b) at two employers?
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Unlike 401(k) and 403(b) plans, which aggregate with each other, the coordination rules for 457(b) plans are specific and depend on plan type. Two 457(b) plans in one year is unusual enough that the administrators should be asked directly rather than assumed.
Does the limit change if I am also self-employed?
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A plan you sponsor through your own business has its own annual additions limit, separate from the 457(b) at your employer. Your elective deferral limit is still one figure across 401(k) and 403(b) plans, and a 457(b) sits outside that aggregation entirely.