What is a 403(b) plan?

A 403(b) is a tax-advantaged retirement plan for employees of public schools, nonprofits (501(c)(3) organizations), and certain ministers. Originally called a "tax-sheltered annuity" (TSA), it works similarly to a 401(k) but is designed for tax-exempt organizations.

What is the 403(b) contribution limit?

For 2025, the employee contribution limit is $23,500. Workers age 50+ can contribute an additional $7,500 catch-up. Ages 60–63 have an additional super-catch-up under SECURE 2.0. 403(b) plans uniquely allow a 15-year catch-up ($3,000/year, $15,000 lifetime) for employees with 15+ years of service at the same eligible employer.

How is a 403(b) different from a 401(k)?

Both offer similar tax treatment and the same employee contribution limits. The differences: 403(b)s are for nonprofit/government employees rather than for-profit companies; 403(b) historically had higher fees due to annuity-product dominance (now improving); 403(b) plans uniquely allow the 15-year catch-up provision. Investment options in 403(b)s have historically been more limited but have expanded considerably.

Should I roll my 403(b) to an IRA when I leave?

Often yes. An IRA gives you full control over investment choice and typically lower expense ratios than most 403(b) plans. Leave the money in the 403(b) if: it has a particularly good investment lineup, you need creditor protection (some states protect 401(k)/403(b) more than IRAs), or you want to keep options for 72(t) SEPP distributions. Rolling to an IRA also enables backdoor Roth conversions if income limits otherwise block direct Roth contributions.

Can my employer contribute to my 403(b)?

Yes, though less than half of 403(b) plans offer an employer match (much lower than 401(k) plan matching). When offered, matches typically range from 1–5% of salary. The total combined annual limit (employee + employer + nonelective) is $70,000 for 2025 or 100% of compensation, whichever is less.

403(b) Calculator

Calculate how much your 403(b) retirement plan will grow over time. Enter your salary, contribution rate, employer match, and expected return to project your retirement balance. Popular with teachers, nurses, and nonprofit workers.

A 403(b) is the nonprofit and public-education sibling of the more familiar 401(k). Originally created for public school teachers and ministers, it now covers employees of public schools, colleges, hospitals, charitable organizations, and certain other 501(c)(3) entities. The two plan types share most features — same employee contribution limits, similar tax treatment, similar investment lineup — but differ in some details that matter for planning.

The 2025 employee contribution limit is $23,500 (matching the 401(k) limit), with a $7,500 catch-up for workers age 50+ and an additional super-catch-up for ages 60–63 under SECURE 2.0. 403(b) plans uniquely also allow a special "15-year catch-up" provision: employees with 15+ years of service at the same eligible employer can contribute an extra $3,000/year for up to 5 years ($15,000 lifetime). Combined limits can be substantial for long-tenured workers nearing retirement.

This calculator projects your 403(b) balance at retirement using your current balance, contribution rate, employer match (if any), expected return, and time horizon. Use it to evaluate whether your current contribution rate is on track for a comfortable retirement, to test the impact of bumping contributions up, or to estimate the future value of a long career's worth of consistent saving in a tax-advantaged plan.

Inputs

Annual Salary

Your Contribution Rate

Employer Match Rate

Employer Match Limit

Max % of salary employer will match

Current 403(b) Balance

Expected Annual Return

Years Until Retirement

Annual Salary Growth

Results

Projected Balance

$798,059

Your Contributions

$208,197

Employer Contributions

$62,459

Investment Growth

$502,403

Balance Growth Over Time

Balance Breakdown

Year-by-Year Breakdown

Year	Salary	Your Contribution	Employer Match	Growth	End Balance
1	$65,000.00	$6,500.00	$1,950.00	$2,045.75	$35,495.75
2	$66,300.00	$6,630.00	$1,989.00	$2,786.37	$46,901.12
3	$67,626.00	$6,762.60	$2,028.78	$3,590.78	$59,283.27
4	$68,978.52	$6,897.85	$2,069.36	$4,463.68	$72,714.16
5	$70,358.09	$7,035.81	$2,110.74	$5,410.12	$87,270.84
6	$71,765.25	$7,176.53	$2,152.96	$6,435.49	$103,035.81
7	$73,200.56	$7,320.06	$2,196.02	$7,545.57	$120,097.45
8	$74,664.57	$7,466.46	$2,239.94	$8,746.55	$138,550.39
9	$76,157.86	$7,615.79	$2,284.74	$10,045.05	$158,495.96
10	$77,681.02	$7,768.10	$2,330.43	$11,448.17	$180,042.65
11	$79,234.64	$7,923.46	$2,377.04	$12,963.50	$203,306.66
12	$80,819.33	$8,081.93	$2,424.58	$14,599.19	$228,412.37

Last updated: May 26, 2026Reviewed by the CalcMountain editorial team

Formula

Annual contributions: Your Annual Contribution = Salary × Contribution Rate Employer Match = Salary × min(Contribution Rate, Match Limit) × Match Rate / Contribution Rate (For typical "dollar-for-dollar up to X%" matches:) Employer Match = Salary × min(Contribution Rate, Match Limit) × (Match Rate / Match Limit) Or simpler form when match rate equals match percentage: Employer Match = Salary × min(Contribution Rate, Match Limit) × Match Rate Total Annual Contribution = Your Annual Contribution + Employer Match Future value with annual salary growth and steady contribution rate: Year 1 contribution = Initial Salary × (your % + matched %) Each year: salary grows by g, contribution scales accordingly. FV = B₀ × (1 + r)^n + Σ [t=1 to n] Annual_Contribution(t) × (1 + r)^(n − t) Where: B₀ = Current balance r = Annual return (decimal) n = Years until retirement Annual_Contribution(t) = Salary(t) × total contribution % Example: $65,000 salary, 10% employee contribution + 3% employer match capped at 6% of salary, $25,000 current balance, 7% return, 25 years to retirement, 2% salary growth. Year 1 employee contribution: $65,000 × 10% = $6,500 Year 1 employer match: $65,000 × min(10%, 6%) × (3%/6%) = $65,000 × 6% × 0.5 = $1,950 Year 1 total: $8,450 Approximate ending balance (with growth in salary and contributions): ≈ $25,000 × 1.07^25 + average annual contribution growing 2%/year compounded at 7% ≈ $135,700 + ≈ $700,000 = $835,700 A typical mid-career teacher saving 10% with modest match can build $800K–$1M+ over 25 years.

How to use this calculator

Enter your current annual gross salary.
Enter your contribution rate as a percentage of salary. The 2025 limit is $23,500 employee contribution; ages 50+ get an additional $7,500 catch-up; ages 60–63 get a super-catch-up. For most workers, contributing 10–15% of salary is a strong target.
Enter your employer's match formula. Common structures: "100% match up to 3%" (employer match = 3% if you contribute at least 3%), or "50% match up to 6%" (employer match = 3% if you contribute at least 6%). Less than half of 403(b) plans offer a match, so $0 is common.
Enter your current 403(b) balance.
Set the expected annual return. Diversified equity portfolios have averaged 7–10% nominal over multi-decade periods; bond-heavy portfolios 4–6%. Use 6–7% as a conservative planning rate.
Set years until retirement. Average teacher career is 25+ years; nonprofit workers vary widely.
Set salary growth. Education salaries often have predictable step increases; nonprofit raises are typically tied to budget. 2–3% is a reasonable assumption for most.
Review the projected balance at retirement. Compare to a "25× annual expenses" benchmark for adequacy. If short, increasing the contribution rate or staying employed longer are the most powerful levers.

Worked examples

New teacher starting 30-year career

Age 25, $48,000 starting salary, 8% contribution + 2% employer match (small district), $0 balance, 35-year horizon. Salary growth: 2.5% (step increases). Year 1 contribution: $48,000 × 10% = $4,800 (employee + match) After 35 years at 7% with salary growing 2.5%: Total contributions: ~$280,000 (across all years) Final balance: ~$870,000 The compound growth dominates contribution amount over a 35-year horizon. The same person saving 15% instead of 8% reaches ~$1.3M.

Late-career catch-up — 15-year catch-up provision

Age 55, $90,000 salary, 18 years of service at the same employer. Currently contributing $23,500/year (limit), already 50+ so can add $7,500 catch-up = $31,000. Plus 15-year catch-up: $3,000/year additional ($15,000 lifetime). Total possible annual contribution: $34,000/year (extraordinary). Plus employer match if available. The 15-year catch-up is unique to 403(b) plans and uncommon in other workplace plans. Long-tenured educators and nonprofit workers approaching retirement can use it to dramatically accelerate final savings.

Comparing minimum to maximum savings

Age 40, $70,000 salary, $50,000 current balance, 25 years to retirement, 7% return, 2.5% salary growth. Scenario A — 6% contribution: ~$610,000 projected at retirement. Scenario B — 10% contribution: ~$830,000 projected. Scenario C — Maximum ($23,500/yr = 33.6% of $70K, growing with salary): ~$1,650,000 projected. The difference between minimum-match-capturing and maximum-contributing is over $1 million in this scenario. Contribution rate matters enormously, especially with 20+ year horizons.

When to use this calculator

Use this calculator at the beginning of any new education or nonprofit job, when reviewing benefits during annual enrollment, when considering whether to bump contributions after a raise, or when checking that you're on track for retirement.

For 403(b) participants specifically, this calculator is also useful for evaluating provider switches. Many 403(b) plans, especially in school districts, have been historically saddled with high-fee annuity products marketed by insurance companies. The SECURE Act and various reforms have improved provider options, but checking that your investment expenses are below ~0.50% of assets (preferably below 0.20% via low-cost index funds) is critical to long-term outcomes. The calculator output assumes a clean expected return — fees of 1–2% silently shrink it materially.

Pair this with the 401(k) calculator (most comparison material), the IRA calculator (for additional retirement savings beyond the 403(b)), the Roth-vs-Traditional and Roth-vs-Traditional-401(k) calculators (since many 403(b)s now offer Roth options), the pension calculator (since many public-sector workers also have a pension), and the retirement-savings calculator (the broader projection).

For public school teachers and other government workers, the 403(b) often comes alongside a separate pension plan. The two work together — the pension provides a base income floor; the 403(b) provides retirement income flexibility above that floor. Many financial plans for educators rely heavily on the pension and lightly on the 403(b); be aware of pension funding status and possible benefit reductions to make sure the 403(b) is sized appropriately as backup.

A note on 403(b) Roth options: most modern 403(b) plans now offer Roth treatment (after-tax contributions, tax-free growth and withdrawals). For workers in lower-than-expected retirement tax brackets, the Roth choice can save significant taxes over decades. Run the Roth-vs-Traditional-401(k) calculator with your specific numbers to decide.

Common mistakes to avoid

Skipping employer match. If your employer matches 3% when you contribute 6%, contributing less than 6% leaves free money on the table. Match capture should always be the first priority, ahead of paying down low-rate debt or extra mortgage payments.
Investing in high-fee annuity products. Many 403(b) plans historically pushed variable annuities with 2%+ annual fees. These products dramatically reduce long-term returns. Check that your 403(b) offers low-cost index funds or target-date funds with expense ratios under 0.20%.
Not using the 15-year catch-up if eligible. Long-tenured teachers and nonprofit workers can contribute an extra $3,000/year for up to 5 years ($15,000 total) on top of the regular catch-up. Many eligible employees don't know about it.
Treating Traditional as the default. Many 403(b) plans now offer Roth options. For lower-bracket workers (especially early career), the Roth choice often produces meaningfully better after-tax outcomes.
Withdrawing early. 403(b) withdrawals before age 59½ trigger the 10% early-withdrawal penalty plus ordinary income tax. SEPP/72(t) and certain hardship exemptions exist but should be evaluated carefully.
Not coordinating with the pension. Many public-sector workers have both a pension and a 403(b). Heavy reliance on the pension while underfunding the 403(b) creates concentration risk if pension funding deteriorates. Diversify.

Frequently Asked Questions

Sources & further reading

403(b) Tax-Sheltered Annuity Plans — IRS guide — U.S. Internal Revenue Service
Retirement Topics — 403(b) Contribution Limits — U.S. Internal Revenue Service
Publication 571 — Tax-Sheltered Annuity Plans — U.S. Internal Revenue Service

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