403(b) Retirement Calculator
This 403(b) calculator projects your account balance at retirement based on your salary, contribution percentage, employer match, expected rate of return, and years until retirement. It also shows a year-by-year growth chart and breaks down how much of your final balance comes from your own contributions versus investment growth. Results update as you type.
What is a 403(b) plan?
A 403(b) plan is a tax-advantaged retirement account available to employees of public schools, non-profit organizations, hospitals, and certain other 501(c)(3) employers. It works much like a 401(k): you contribute a percentage of your pre-tax salary each pay period, those contributions reduce your taxable income for the year, and the money grows tax-deferred until you withdraw it in retirement. You pay ordinary income tax on withdrawals, but the years of tax-deferred compounding typically more than offset the deferred tax bill.
How this calculator projects your balance
The calculator uses monthly compounding to model your account growth. Each year your contributions are spread evenly across 12 monthly deposits, each earns your net annual return (your stated return minus the expense ratio), and then your salary - and therefore your contributions - increases by the annual salary-increase rate you specify. The employer match is modeled as a percentage of your salary up to the match cap: for example, a "3% match up to 3% of salary" means the employer contributes 3 cents for every dollar you put in, stopping once you have contributed 3% of your salary. The IRS elective deferral limit ($24,500 in 2026) is enforced automatically, and the higher catch-up limits for ages 50-59 ($8,000 extra) and 60-63 ($11,250 extra, under SECURE 2.0) are applied when your current age qualifies.
Contribution limits and catch-up rules for 2026
For 2026 the IRS allows you to defer up to $24,500 of salary into a 403(b) (up from $23,500 in 2025). If you are 50 or older by December 31, you can contribute an additional $8,000 catch-up amount, for a total of $32,500. A higher catch-up applies specifically for ages 60, 61, 62, and 63 under the SECURE 2.0 Act: those participants can contribute an extra $11,250, for a total of $35,750. Participants who are 64 or older revert to the standard $8,000 catch-up. These limits apply only to your own elective deferrals; employer contributions are not counted against them and are subject to a separate overall limit ($70,000 in 2026).
The impact of fees on long-term growth
Expense ratios look small in isolation, but they compound over time. An investor earning 7% gross who pays a 1% expense ratio nets 6% - after 30 years a $50,000 starting balance with $500/month contributions grows to roughly $613,000 at 6% versus $761,000 at 7%, a $148,000 difference from a single percentage point of fees. Many 403(b) plans historically carried high fees (1-2%) from insurance-company annuity products. If your plan offers low-cost index funds with expense ratios under 0.20%, choosing them can add tens of thousands of dollars to your final balance.
2026 IRS 403(b) contribution limits
| Age group | Elective deferral limit | Catch-up addition | Total allowed |
|---|---|---|---|
| Under 50 | $24,500 | - | $24,500 |
| Age 50-59 | $24,500 | +$8,000 | $32,500 |
| Age 60-63 (SECURE 2.0) | $24,500 | +$11,250 | $35,750 |
| Age 64 and above | $24,500 | +$8,000 | $32,500 |
Source: IRS Rev. Proc. 2025-43. Limits apply to elective salary deferrals (not employer contributions).
Frequently asked questions
What is the 403(b) contribution limit for 2026?
The IRS elective deferral limit for 403(b) plans in 2026 is $24,500. Employees aged 50-59 or 64 and older can add a $8,000 catch-up for a total of $32,500. Employees aged 60-63 benefit from the SECURE 2.0 enhanced catch-up of $11,250, allowing a total of $35,750.
How does the employer match work in a 403(b)?
Most employers match a percentage of your contributions up to a cap. A common formula is "50% match up to 6% of salary," meaning the employer contributes 50 cents for each dollar you put in, but only on contributions up to 6% of your salary. Capturing the full match is effectively a 50% or 100% instant return on those dollars and should be the first priority before any other retirement savings.
Is a 403(b) the same as a 401(k)?
They are very similar. Both offer pre-tax (traditional) contributions, tax-deferred growth, the same annual contribution limits, and required minimum distributions starting at age 73. The key difference is eligibility: 401(k) plans are offered by for-profit companies, while 403(b) plans are limited to employees of public schools, non-profits, and similar tax-exempt organizations. Some 403(b) plans also offer a special 15-year catch-up provision for long-service employees, which 401(k) plans do not.
What rate of return should I use in the calculator?
The long-run inflation-adjusted annual return of US stocks is roughly 7% and nominal (pre-inflation) return is closer to 10%. A balanced portfolio of stocks and bonds has historically returned 6-8% nominally. For a conservative estimate use 5-6%, for a balanced assumption use 7%, and for an equity-heavy allocation use 8-9%. Remember to subtract your plan's expense ratio from whatever return you assume - the calculator does this automatically via the "annual fund fee" field.
When can I withdraw from my 403(b) without penalty?
You can take penalty-free distributions at age 59.5. Withdrawals before that age are subject to a 10% early-withdrawal penalty plus ordinary income tax, with exceptions for disability, certain medical costs, and a few other qualifying hardship events. Required minimum distributions (RMDs) must begin by April 1 of the year after you turn 73 under current law.
Does this calculator account for taxes?
This calculator projects the pre-tax balance - the full account value before any withdrawals are taxed. Traditional 403(b) contributions and growth are tax-deferred, so you will owe ordinary income tax on withdrawals. A Roth 403(b) option (if your plan offers it) uses after-tax contributions but allows tax-free withdrawals. Your actual spendable income in retirement will depend on your tax bracket at withdrawal time, which this calculator does not model.