Contribution limits for the 403(b) have increased in 2025. The IRA will remain the same. The contribution limit for the 403(b) is $23,500. The limit on annual contributions to an IRA will continue to be $7,000.
If you’re not maximizing your contributions, you may wish to re-evaluate the amount you’re putting toward retirement. Not only do you lower your taxable income, you ensure that you’re doing everything you can to reach your retirement goals.
If maxing out contributions is not realistic for you right now, remember: With compound interest, even a small amount invested today can grow to a large sum by retirement.
Elective 403(b) Contribution Limits
| Calendar year | Salary Reduction Contribution Limit | 15 Years of Service Catch-Up | Age 50 and Over Catch-Up | Possible maximum |
|---|---|---|---|---|
| 2025 | $23,500 | $3,000 | $7,500 | $34,000 |
| 2024 | $23,000 | $3,000 | $7,500 | $33,500 |
- Not all districts offer the 15 years of service catch-up provision in their 403(b) plan. Contact your district office to learn more.
- Some employers only allow changes at the start of the school year and then again in January. Others allow more frequent changes. Call Member Benefits to assist you with updating your salary deferral amount.
- Some districts may allow Roth 403(b) contributions. Your 2025 Roth contributions and your pre-tax contributions combined must not exceed the $23,500 limit for participants under age 50, or $31,000 for participants age 50 and above.
IRA (Roth and Traditional) Contribution Limits
| Calendar year | Under age 50 | Age 50 or older |
|---|---|---|
| 2025 | $7,000 | $8,000 |
| 2024 | $7,000 | $8,000 |
- You may contribute to both a Roth and Traditional IRA, but your combined contributions must not exceed the annual limits.
- You can start or modify IRA recurring contributions and/or submit a one-time lump-sum contribution in the yourMONEY portal.
- If you make automatic IRA contributions using SmartPlan, your contributions do not adjust automatically to meet the new limits. To make adjustments, call 1-800-279-4030 or print out an IRA Contribution Form.
NOTE: Because the maximum Roth IRA contribution may be reduced depending on MAGI (Modified Adjusted Gross Income), some high-income taxpayers may not be able to make Roth IRA contributions; however, they could make Traditional IRA contributions.