403(b) Contribution Calculator

A 403(b) plan is a tax-advantaged retirement savings plan for employees of public schools, non-profit organizations, certain ministers, and hospital employees — analogous to a 401(k) for private-sector workers. Contributions reduce your taxable income in the year they are made (traditional 403(b)) or grow tax-free (Roth 403(b), if offered). Many public school teachers, university employees, and hospital staff are eligible for 403(b) plans.

The 2025 employee elective deferral limit is $23,500 — the same as the 401(k) limit. Employees age 50 or older can contribute an additional $7,500 catch-up contribution, bringing the total to $31,000. Under SECURE 2.0, employees aged 60–63 are eligible for an enhanced catch-up contribution of $11,250 instead of the standard $7,500 catch-up, for a maximum of $34,750. These limits apply to the employee contribution only; employer contributions are counted separately toward the overall $70,000 limit (2025).

If your employer offers a match, they typically contribute a percentage of your salary equal to your own contribution up to a cap. For example, a 50% match on up to 6% of salary means the employer adds 3% of salary if you contribute at least 6%. This calculator lets you set both the match percentage (how many cents per dollar the employer adds) and the cap (the maximum percentage of salary eligible for matching). Always contribute at least enough to capture the full employer match — it is effectively a 50–100% instant return.

Starting in 2025, the SECURE 2.0 Act introduced an enhanced catch-up contribution for workers aged 60–63. Instead of the standard age-50+ catch-up of $7,500, employees in this age window can contribute an additional $11,250 — the greater of $10,000 or 150% of the regular catch-up limit (indexed for inflation). This is a "use it while you can" window; at age 64 the enhanced catch-up ends and you revert to the standard $7,500 catch-up.

A traditional 403(b) contribution is made pre-tax, so it reduces your taxable income dollar-for-dollar. The actual paycheck reduction is less than the contribution amount because you save the taxes you would have paid on that income. For example, contributing $500 per biweekly paycheck at a 22% marginal rate saves $110 in federal taxes, so the net paycheck reduction is only $390. State income tax savings add further relief.

Both plans have the same contribution limits, catch-up provisions, and general tax treatment. The key differences are eligibility (403(b) for non-profits, schools, and hospitals; 401(k) for private-sector employers) and investment options. 403(b) plans historically offered only annuity contracts, but most modern plans also include mutual funds. Some 403(b) plans also have a special 15-year catch-up provision for employees with 15+ years of service with the same employer, in addition to the standard age-50 catch-up.