Teacher Retirement Hub → 403(b) & 457(b)

The 457(b) has a catch-up provision your 403(b) doesn't.

A three-year window before retirement can let you defer far more than the standard catch-up limit — if you plan for it in advance.

The Standard Catch-Up, First

For 2026, the base elective deferral limit for a governmental 457(b) is $24,500. If you are 50 or older, you can add a standard catch-up of $8,000, bringing your total to $32,500. If you are 60, 61, 62, or 63 by the end of the calendar year, SECURE 2.0's "super" catch-up raises that additional amount to $11,250, for a total of $35,750 — provided your plan has adopted the provision.

The Three-Year Special Catch-Up Is Different

Separate from the age-based catch-ups above, governmental 457(b) plans can offer a "three-year special catch-up," available only in the three years immediately before the plan's normal retirement age. Under this provision, you can defer up to the lesser of twice the standard annual limit, or the standard limit plus any amount you were eligible to contribute in prior years but did not. For 2026, the double-limit ceiling works out to $49,000.

Critically, you generally cannot stack the age-50 or age-60-to-63 catch-up on top of the three-year special catch-up in the same year — the rules require using whichever of the two produces the larger contribution amount, not both.

Combined With a 403(b), the Numbers Get Real

Because 403(b) and 457(b) limits are separate, a teacher aged 60 to 63 with access to both plans, and both plans offering the super catch-up, can potentially defer $71,500 in combined contributions for 2026: $35,750 to the 403(b) and $35,750 to the 457(b). If your 457(b) instead offers the three-year special catch-up and you have significant unused prior-year room, the combined total could run even higher. These are meaningful numbers for a teacher in their final working years who is trying to shelter income and build savings before retirement.

New for 2026: The Roth Catch-Up Rule for High Earners

Starting in 2026, if you earned more than $150,000 in FICA wages the prior year, your age-based catch-up contributions (the age-50 and age-60-to-63 catch-ups) must be made as Roth contributions rather than pre-tax. This threshold applies to both 403(b) and 457(b) plans. It does not apply to the 457(b) three-year special catch-up or the 403(b) 15-year-of-service catch-up, which can still be made pre-tax if your plan permits.

The three-year special catch-up requires planning ahead — you need to know your normal retirement age under the plan and how much unused contribution room you have accumulated. This is exactly the kind of calculation worth running with someone before your final three years, not during them.

Approaching retirement and want to know what you can actually defer?

We'll calculate your specific catch-up eligibility across your 403(b) and 457(b) and build a plan around it.

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