Year by year
$70,000.00 pay, 10% from you, 2026 limits, 6% a year.
| Age | You | Employer | Balance |
|---|---|---|---|
| 45 | $7,000.00 | $0.00 | $49,590.47 |
| 46 | $7,175.00 | $0.00 | $59,936.14 |
| 47 | $7,354.38 | $0.00 | $71,086.80 |
| 48 | $7,538.23 | $0.00 | $83,095.36 |
| 49 | $7,726.69 | $0.00 | $96,018.02 |
| 50 | $7,919.86 | $0.00 | $109,914.47 |
| 51 | $8,117.85 | $0.00 | $124,848.08 |
| 52 | $8,320.80 | $0.00 | $140,886.18 |
| 53 | $8,528.82 | $0.00 | $158,100.25 |
| 54 | $8,742.04 | $0.00 | $176,566.18 |
| 55 | $8,960.59 | $0.00 | $196,364.57 |
| 56 | $9,184.61 | $0.00 | $217,580.97 |
| 57 | $9,414.22 | $0.00 | $240,306.22 |
| 58 | $9,649.58 | $0.00 | $264,636.74 |
| 59 | $9,890.82 | $0.00 | $290,674.90 |
The "You" and "Employer" columns are what goes in during that one year. Periods longer than 30 years show every fifth year.
Results are estimates for planning. They are not financial, tax or legal advice.
457(b) limits for 2026 and 2027
| Limit | 2026 | 2027 |
|---|---|---|
| You and your employer together | $24,500 | $25,500 |
| Catch-up from age 50 (governmental plans) | +$8,000 | +$8,500 |
| Catch-up at ages 60 to 63 (governmental plans) | +$11,250 | +$11,750 |
| Most with the special 3-year catch-up | $49,000 | $51,000 |
Source: IRS Notice 2025-67 (tax year 2026) and IRS Notice 2026-66 (tax year 2027). Figures last checked against the IRS notices on November 13, 2026.
Two things set the 457(b) apart from a 401(k) or 403(b). The limit is not shared with those plans, so you can fill both. And the limit covers employer money too: anything your employer contributes leaves less room for you.
The two catch-ups
Age 50 and over
Governmental 457(b) plans may let you add $8,000 in 2026 from the year you turn 50, and $11,250 in the years you turn 60, 61, 62 and 63. Plans at tax-exempt organizations cannot offer this.
The special 3-year catch-up
In each of the three years before the year you reach the plan's normal retirement age, your limit can rise to the smaller of:
- twice the yearly limit ($49,000 in 2026), or
- the yearly limit plus the limit you did not use in earlier years.
Both governmental and tax-exempt plans may offer it. You cannot stack it with the age-50 catch-up: in each year the larger of the two applies, and the calculator picks it for you. It treats the retirement age you enter as the plan's normal retirement age. The IRS describes these rules on its page about deferring salary in more than one plan.
Worked examples
A city employee at 45 saving 10% of $70,000
The first year's contribution is $7,000. With 2.5% raises, a 6% return and $40,000 already in the plan, the balance at 60 comes to $290,674.90: $125,523.49 paid in over 15 years and $125,151.41 of growth on top of the starting $40,000.
Using the special catch-up before retiring at 60
Someone aged 55 earning $95,000 wants to put in 40% of pay, $38,000 a year, and has $40,000 of unused limit from earlier years. At 55 and 56 the age-50 catch-up holds them to $32,500 (2026 limits). At 57, 58 and 59 the special catch-up takes over, drawing on the unused limit: $38,000, $38,000 and $37,500 go in. In total they put in $178,500 over five years; without the unused limit it would have been $162,500.
When the employer contributes
On $100,000 of pay with a 5% employer contribution, the employer's $5,000 counts first. A 40-year-old who asks for 30% of pay ($30,000) is held to $24,500 − 5,000 = $19,500 in 2026.
Taking the money out
The IRS states that distributions from a governmental 457(b) plan are not subject to the 10% additional tax on early distributions, apart from amounts that came from a rollover out of another type of plan or an IRA (IRS: exceptions to tax on early distributions). Withdrawals are still taxed as ordinary income unless they come from Roth contributions. If you plan to stop work before 59½, that is a reason to fill the 457(b) before other accounts; the how long will my money last calculator can show how far the balance stretches.
Governmental and tax-exempt plans
| Government employer | Tax-exempt employer | |
|---|---|---|
| Who can join | Employees of the state or local government | A select group of management or highly paid employees |
| Age-50 catch-up | Allowed | Not allowed |
| Special 3-year catch-up | Allowed | Allowed |
| Who holds the money | A trust for employees | The employer; creditors can reach it |
The right-hand column follows the IRS page on non-governmental 457(b) plans.
Questions people ask
What is the 457(b) contribution limit for 2026 and 2027?
$24,500 in 2026 and $25,500 in 2027. Unlike a 401(k), that one figure covers what you and your employer put in together. In a governmental plan you can add $8,000 in 2026 and $8,500 in 2027 from age 50, or $11,250 in 2026 and $11,750 in 2027 in the years you turn 60 to 63.
What is the special 3-year catch-up?
In the three years before the plan’s normal retirement age you may put in up to twice the yearly limit, $49,000 in 2026, but only as far as you have unused limit left over from earlier years in the plan. You cannot use it and the age-50 catch-up in the same year; whichever gives the larger limit applies.
Can I contribute to a 457(b) and a 401(k) or 403(b)?
Yes, and this is the main attraction. The 457(b) limit is separate, so in 2026 you could put $24,500 into a 457(b) and another $24,500 into a 403(b) or 401(k).
Is there a penalty for taking money out before 59½?
Not from a governmental 457(b). Once you have left the employer, withdrawals are taxed as income but the 10% additional tax on early distributions does not apply, except to money you rolled in from another kind of plan or an IRA. That makes a 457(b) useful for people who retire early.
How is a non-governmental 457(b) different?
Plans at tax-exempt organizations are limited to a select group of management or highly paid employees. There is no age-50 catch-up, and the money stays the property of the employer until it is paid to you, so it is exposed to the employer’s creditors. Choose “Tax-exempt employer” in the calculator to apply the catch-up rule.
Does my employer’s contribution reduce what I can put in?
Yes. If your employer puts in $5,000 in 2026, you can put in $19,500, not $24,500. The calculator takes the employer’s share off first.