The 457 plan contribution limit for 2026 is $24,500, or 100% of your includible compensation if that is lower. Governmental plans layer on catch-ups that can raise the ceiling to $32,500 at age 50, $35,750 at ages 60 through 63, or as much as $49,000 under a special three-year pre-retirement catch-up. And because the 457(b) limit is separate from the 401(k) and 403(b) limits, you can max a 457(b) on top of either one.
The 2026 Standard Limit
The IRS adjusts the 457(b) deferral limit each year for inflation. For 2026, the cap is $24,500, up from $23,500 in 2025.1Internal Revenue Service. COLA Increases for Dollar Limitations on Benefits and Contributions That figure covers all of your elective deferrals for the year, whether pre-tax or Roth if your governmental plan offers a Roth option. If your total compensation for the year is under $24,500, the limit is simply what you earn.
One detail catches people used to a 401(k): in a 457(b), employer contributions eat into your own deferral space. The $24,500 cap covers both your salary deferrals and any nonelective contributions your employer makes on your behalf.2Internal Revenue Service. Comparison of Governmental 457(b) Plans and 401(k) Plans: Features and Corrections If your employer puts in $5,000, you can defer only $19,500 of your salary. This single-cap structure applies to both governmental and non-governmental plans.3Internal Revenue Service. How Much Salary Can You Defer if You’re Eligible for More Than One Retirement Plan
Age-Based Catch-Up Contributions
Participants in a governmental 457(b) have access to two age-based catch-ups. Neither is available in a non-governmental (tax-exempt organization) plan.4Internal Revenue Service. Retirement Topics – 457(b) Contribution Limits
Age 50 and Over
If you turn 50 or older during the calendar year, you can contribute an extra $8,000 in 2026, bringing your total to $32,500.5Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500 This is the same age-50 catch-up available in 401(k) and 403(b) plans, and it applies separately to each plan type if you participate in more than one.
Ages 60 Through 63
Under a SECURE 2.0 provision that took effect in 2025, participants who turn 60, 61, 62, or 63 during the calendar year get a larger catch-up of $11,250 instead of the standard $8,000.1Internal Revenue Service. COLA Increases for Dollar Limitations on Benefits and Contributions That puts the 2026 maximum at $35,750 for people in this window. The enhanced amount replaces the standard catch-up rather than stacking on top of it. Once you turn 64, you drop back to the regular $8,000.
One restriction applies to both age-based catch-ups: you cannot use either one in any year you also use the special three-year pre-retirement catch-up. You have to pick one or the other.4Internal Revenue Service. Retirement Topics – 457(b) Contribution Limits
The Special Three-Year Pre-Retirement Catch-Up
This catch-up is available in both governmental and non-governmental 457(b) plans.6Internal Revenue Service. Non-Governmental 457(b) Deferred Compensation Plans During the three consecutive calendar years before you reach your plan’s normal retirement age, you can defer more than the standard limit to make up for prior years when you contributed less than you were allowed.
The maximum you can defer under this rule is the lesser of two figures. The first is twice the standard annual limit, which is $49,000 in 2026. The second is the standard $24,500 plus your cumulative unused deferrals from every prior year you were eligible for the plan. Unused deferrals are calculated by comparing what you were allowed to contribute each year to what you actually put in.7Internal Revenue Service. Issue Snapshot – Section 457(b) Plan of Governmental and Tax-Exempt Employers – Catch-Up Contributions If you maxed out your 457(b) every year you were eligible, you have zero unused deferrals and this catch-up does nothing for you.
Your plan’s normal retirement age is defined in the plan document. Many plans let you select an age within a range, but it can never be later than 70½.7Internal Revenue Service. Issue Snapshot – Section 457(b) Plan of Governmental and Tax-Exempt Employers – Catch-Up Contributions The three-year window must be continuous and cannot include the year you actually retire.6Internal Revenue Service. Non-Governmental 457(b) Deferred Compensation Plans
If the three-year formula produces a smaller number than your age-based catch-up would, the age-based option is the better choice for that year. The IRS has flagged one practical difficulty: calculating unused deferrals requires accurate records going back to when you first became eligible for any 457(b) plan, and many participants lack those records. Errors are common.6Internal Revenue Service. Non-Governmental 457(b) Deferred Compensation Plans
Stacking a 457(b) With a 401(k) or 403(b)
This is where the 457(b) becomes powerful. Your 457(b) contribution limit is entirely separate from the limits on 401(k) and 403(b) plans. The two are not aggregated.3Internal Revenue Service. How Much Salary Can You Defer if You’re Eligible for More Than One Retirement Plan If your employer offers both a 457(b) and a 403(b), you can max both.
In 2026, that means $24,500 into a 457(b) and another $24,500 into a 401(k) or 403(b), for a combined $49,000 in elective deferrals from your salary alone. Add age-based catch-ups to both plans and the totals climb further. This dual-plan strategy is common among public-sector employees with access to both a 403(b) and a governmental 457(b). For someone in the early 60s maxing both plans with the enhanced SECURE 2.0 catch-up, total elective deferrals could exceed $71,000 in a single year.
The non-aggregation rule applies whether your 457(b) is sponsored by a governmental or non-governmental employer.3Internal Revenue Service. How Much Salary Can You Defer if You’re Eligible for More Than One Retirement Plan
What Non-Governmental Plans Cannot Do
If your 457(b) is sponsored by a tax-exempt organization such as a hospital, charity, or university rather than a state or local government, several of the limits above do not apply to you. The standard $24,500 deferral cap and the three-year pre-retirement catch-up are available in both plan types. The age-50 catch-up and the SECURE 2.0 catch-up for ages 60 through 63 are not; both are exclusive to governmental plans.4Internal Revenue Service. Retirement Topics – 457(b) Contribution Limits Roth (after-tax) contributions are similarly limited to governmental 457(b) plans.8Internal Revenue Service. IRC 457(b) Deferred Compensation Plans
If You Go Over the Limit
Excess deferrals and the earnings on them have to come back out. In a non-governmental plan, the excess must be distributed by April 15 of the following year, and missing that deadline can cost the plan its eligible status.6Internal Revenue Service. Non-Governmental 457(b) Deferred Compensation Plans In a governmental plan, the excess must be distributed as soon as administratively practicable after it is discovered.9Internal Revenue Service. Issue Snapshot – 457(b) Plans – Correction of Excess Deferrals The simplest safeguard is to track year-to-date deferrals and coordinate with your plan administrator, particularly if you participate in more than one plan or change employers mid-year.