Updated October 21, 2026. Quick answer: Publication 571 is the IRS guide to 403(b) tax-sheltered annuity plans, and the web edition is the 01/2026 revision. It says the general limit on elective deferrals is $23,500 for 2025 and $24,500 for 2026. It includes worksheets for figuring the maximum amount contributable.
Quick reference
| Item | As the IRS publication states it |
|---|---|
| General limit on elective deferrals (chapter 4) | $23,500 for 2025 and $24,500 for 2026 |
| Limit on annual additions, 2026 change (What’s New for 2026) | $70,000 to $72,000 |
| Elective deferrals under the 15 year rule (chapter 4) | $26,500 for 2025 and $27,500 for 2026 |
| Catch-up for ages 60 to 63 (chapter 6) | $11,250 for 2025 |
| Saver’s Credit maximum (chapter 10) | up to $2,000 (up to $4,000 if filing jointly) |
| Excise tax on excess annual additions to a custodial account (chapter 7) | 6% |
| Correcting distribution of an excess deferral (chapter 7) | April 15 of the following year |
What the publication covers
The introduction says “This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan.” The IRS page for this edition reads “Revised: January 2026”.
Its stated goals include “Determine the maximum amount that can be contributed to your 403(b) account in 2026.” and “Determine the maximum amount that could have been contributed to your 403(b) account in 2025.”
On what a plan is, chapter 1 says “A 403(b) plan, also known as a tax-sheltered annuity (TSA) plan, is a retirement plan for certain employees of public schools, employees of certain tax-exempt organizations, and certain ministers.”
Chapters in plain words
- Chapter 1, 403(b) Plan Basics: who can participate and how contributions are made.
- Chapter 2, Maximum Amount Contributable (MAC).
- Chapter 3, Limit on Annual Additions, with includible compensation.
- Chapter 4, Limit on Elective Deferrals, including the 15 year rule and years of service.
- Chapter 5, Ministers and Church Employees.
- Chapter 6, Catch-up Contributions.
- Chapter 7, Excess Contributions.
- Chapter 8, Distributions and Rollovers.
- Chapter 9, Worksheets: Worksheet A, Cost of Incidental Life Insurance; Worksheet B, Includible Compensation for Your Most Recent Year of Service; Worksheet C, Limit on Catch-up Contributions; and Worksheet 1, Maximum Amount Contributable (MAC).
- Chapter 10, Retirement Savings Contributions Credit (Saver’s Credit).
The contribution limits
Chapter 2 sets the rule: “Generally, contributions to your 403(b) account are limited to the lesser of:” the limit on annual additions or the limit on elective deferrals.
In chapter 4, “the most that can be contributed to your 403(b) account through a salary reduction agreement is $23,500 for 2025 and $24,500 for 2026.” The What’s New section adds “For 2026, the limit on annual additions has increased from $70,000 to $72,000.” See our 403(b) contribution limit for 2026.
The 15 year rule applies “If you have at least 15 years of service with an educational organization” among other employers, and the publication says “your elective deferrals under this limit can be as high as $26,500 for 2025 and $27,500 for 2026.”
Catch-up contributions
Chapter 6 says “If you will be age 50 or older by the end of the year, you may also be able to make additional catch-up contributions.” For the higher tier, “Their maximum amount of catch-up contributions is 150% of the applicable dollar-catch-up limit, which is $11,250 for 2025.”
It also notes that “Therefore, the maximum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contributions.” See 401(k) catch-up contributions for 2026 for a comparison.
Excess contributions, distributions and the Saver’s Credit
Chapter 7 begins “If your actual contributions (not including catch-up contributions) are greater than your MAC, you have an excess contribution.” For custodial accounts, “you may be subject to a 6% excise tax on the excess contribution.” On timing, “you may receive a correcting distribution of the excess deferral no later than April 15 of the following year.”
On required distributions, chapter 8 says that if you miss one, “you are subject to a nondeductible 25% (or 10% if corrected by a specified time) excise tax”. For the rules on taking money out, see 403(b) withdrawal rules.
Chapter 10 says “you may be able to take a credit of up to $2,000 (up to $4,000 if filing jointly).” The 2025 income cap for joint filers is given as “$79,000 for 2025 ($80,500 for 2026) if your filing status is married filing jointly”. See the Saver’s Credit and Form 8880.
Where this comes from
The IRS page About Publication 571 opens with “This publication explains tax rules for 403(b) tax-sheltered annuity plans.” It links the PDF and eBook editions and the earlier revisions of the publication.
This page describes the web edition of Publication 571 (01/2026), Tax-Sheltered Annuity Plans (403(b) Plans), as served on irs.gov on October 21, 2026. The IRS can revise a publication after we read it, and the IRS page controls. General information, not tax or legal advice.
Common mistakes
- Reading the 01/2026 title as a 2026 only guide. The introduction says it covers both “Determine the maximum amount that can be contributed to your 403(b) account in 2026.” and 2025.
- Counting catch-up contributions against the main limit. The publication says “Therefore, the maximum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contributions.”
- Applying the limit to one account at a time. The IRS says “you must combine all the elective deferrals to determine whether the total is more than the limit for that year.”
- Expecting full distribution rules here. The introduction says “This is covered in Pub. 575, Pension and Annuity Income.”
Related: IRS publications by number, 403(b) contribution limit for 2026, 403(b) withdrawal rules, 403(b) vs 401(k) differences, 403(b) vs 457(b), which first, 401(k) catch-up contributions for 2026, Saver’s Credit, and Form 8880.
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Answer againSources
- IRS, Publication 571 (01/2026), Tax-Sheltered Annuity Plans (403(b) Plans) (irs.gov): https://www.irs.gov/publications/p571
- IRS, About Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations (irs.gov): https://www.irs.gov/forms-pubs/about-publication-571
Read from the IRS pages linked above on October 21, 2026. General information, not tax or legal advice. The IRS publication and the instructions for your own form control, and your own facts decide the outcome.