Updated September 29, 2026. Quick answer: the 2026 elective-deferral limit for a governmental or eligible tax-exempt 457(b) plan is $24,500, per IRS Notice 2025-67. That happens to equal the 401(k)/403(b) limit this year, but it is a legally separate cap under 26 U.S.C. §457(e)(15): the two limits have moved in exact lockstep every year since at least 2023, but a person who has both a 401(k) and a governmental 457(b) available can defer the full amount into each one in the same year, for a combined $49,000 in 2026. Milliman’s July 2026 forecast projects $25,500 for 2027.
The confirmed 2025 and 2026 limits
| 2025 | 2026 | Projected 2027 | |
|---|---|---|---|
| Elective deferral limit | $23,500 | $24,500 | $25,500 (Milliman, Aug 13, 2026) |
A separate statute that happens to track the 401(k) figure
The 457(e)(15) limit is not derived from §402(g); it is its own inflation-indexed cap, historically applied to state and local government deferred-compensation plans and to a narrower set of tax-exempt-organization plans. The IRS’s own COLA-increases table shows the two limits (“Elective deferrals” and “457 elective deferrals”) as separate rows that have carried the identical dollar figure for at least the last four years, which is why the two accounts can be maxed independently and simultaneously: a 457(b) does not share your 401(k)/403(b) limit the way a 403(b) shares it with a 401(k). The standard age-50 catch-up is only available to governmental 457(b) plans; non-governmental (tax-exempt-employer) 457(b) plans instead offer only a separate “final three years before normal retirement age” catch-up under §457(b)(3), not the standard age-50 add-on.
The rates are already settled. Only the thresholds are still moving.
That is enough to plan against. A Roth conversion, a deferred bonus or a gain taken in 2027 can be sized today against the 10%, 12%, 22%, 24%, 32%, 35% and 37% rates the statute already fixes, without waiting for the Revenue Procedure. If you want someone to price that decision against your own income rather than a projection, this is the point to ask.
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Sources
The 2026 figures on this page were checked against IRS Notice 2025-67 on September 29, 2026.
- IRS Notice 2025-67: 2026 §457(e)(15) elective deferral limit.
- IRS, Retirement Topics – 457(b) Contribution Limits: 457(b) plan mechanics.
- IRS, "COLA Increases for Dollar Limitations on Benefits and Contributions": the IRS table of cost-of-living adjustments to retirement plan limits, 2026 and earlier years.
2027 projection: Milliman, August 13, 2026.
Statute: 26 U.S.C. §457(e)(15).
Related
General information, not tax or legal advice. This page will be updated with the official 2027 figure the day it is announced.
How your 457(b) contributions appear on a W-2: code G, code EE for Roth.