403(b) Supplemental Retirement Program Contribution Limits
Contribution limits for 403(b) plans for 2026 are defined as follows:
- 100% of salary (Section 415 of the Internal Revenue Code) or
- $24,500 (Section 402(g) of the Internal Revenue Code) or
- $72,000 (Section 415 of the Internal Revenue Code) - this limit includes 403(b) Base Retirement Program (BRP) contributions made by both you and MSU
How To Determine Your 2026 Contribution Limit
- Use the annual salary column below to determine which limit governs your contributions.
- Determine the dollar amount you may defer.
- Your contributions can be either pre-tax or after-tax Roth, which do NOT change the amount that you can contribute. Learn more about after-tax Roth below and at the Roth and SECURE 2.0 Act FAQ.
- Due to the SECURE 2.0 Act provisions and requirements, you may contribute a higher catch-up amount (if you turn ages 60-63 in the year), and your catch-up contributions may be required to be after-tax Roth (if you earn over a certain amount). Learn more about the after-tax Roth and SECURE 2.0 Act provisions below and at the Roth and SECURE 2.0 Act FAQ.
| Annual Salary | Governing Limit | Contribution Limit |
|---|---|---|
| $24,500 or less | 415 | 100% of Salary |
| $24,501 up to $316,666 | 402(g) | $24,500 * (Total must include all voluntary plan contributions) |
| $316,667 or greater | 415 | Combined employee and employer contributions up to $72,000* |
*If you are enrolled in the 403(b) Base Retirement Program on a voluntary basis, your 5% employee contribution must be subtracted from the total contribution limit. Some employees may have their 403(b) SRP and/or their 403(b) BRP contributions reduced due to meeting the Section 415 limit first, which may mean they may be missing some university matching contribution to the 403(b) BRP.
To determine if your participation in the 403(b) BRP is on a voluntary basis, refer to the Base Program Eligibility Chart or your MSU Earnings Statement in the EBS Portal.
On your Earnings Statement, if the retirement contribution is coded as "Base Vol 403b", your participation is voluntary (generally an employee is under the age of 35 and/or has less than 24 Full Time Equivalent (FTE) service months). If the retirement contribution is coded as "Base Mn 403b", your participation is mandatory. The 5% BRP amount would not need to be subtracted from the deferral limit.
Scheduled 402(g) Increases
| Year | Annual 402(g) Contribution Limit |
|---|---|
| 2026 | $24,500 |
| 2025 | $23,500 |
Cost of living adjustments may allow for additional increases to these limits in increments of $500 per year.
Additional Catch-up Contributions
- Age 50 catch-up - any employee who obtains or is over the age of 50 in 2026 is eligible for an additional $8,000 "catch-up" contribution, and those contributions can be either pre-tax or after-tax Roth. Learn more about Roth at the Roth and SECURE 2.0 Act FAQ.
- For those turning ages 60-63 in the calendar year, the SECURE 2.0 Act provisions allow you to contribute a higher amount ($11,250 in 2026 instead of the standard $8,000 catch-up amount).
- For those who earned above a certain amount last year at MSU (above $150,000 based on your MSU 2025 W-2 Box 3 Social Security wage), the SECURE 2.0 Act provision requires your catch-up contributions to be after-tax Roth. Learn more about after-tax Roth at the Roth and SECURE 2.0 Act FAQ.
- This catch-up provision is not applicable to the 402(g) or 415 contribution limits as explained above.
Scheduled Catch-up Increases
| Year | Annual 402(g) Contribution Limit | Additional Catch-up Limit |
Total Contribution Limit |
|---|---|---|---|
| 2026 | $24,500 | $8,000 | $32,500 |
| 2025 | $23,500 | $7,500 | $31,000 |
Cost of living adjustments (COLAs) may allow for additional increases to these limits in increments of $500 per year. For those turning ages 60-63 in 2026, the catch-up limit is $11,250 instead of the standard $8,000.
Sample Calculations
EXAMPLE #1:
Juanita is a 30-year-old newly hired Associate Professor, is considered a Voluntary 403(b) Base participant, and has an annual salary of $80,000. How much may she contribute to the 403(b) Supplemental Program in 2026?
| Type | Amount |
|---|---|
| Annual Salary | = $80,000 |
| 5% Annual Voluntary BRP Contributions | = $4,000 |
| IRS Limit | = $24,500 |
| Minus 5% Voluntary BRP Contributions | = -$4,000 |
| Available Amount for 403(b) SRP | = $20,500 |
Please Note: Employees hired after the first of the year, will need to prorate their voluntary contributions.
EXAMPLE #2:
Roger is a 58-year-old CTU member who has been with MSU for 25 years, is considered a Mandatory 403(b) Base participant, and has an annual salary of $60,000. How much may he contribute to his 403(b) Supplemental Program in 2026?
| Type | Amount |
|---|---|
| Annual Salary | = $60,000 |
| IRS Limit | = $24,500 |
| Plus Age 50 Catch-up | = $8,000 |
| Available Amount for 403(b) SRP | = $32,500 |
Note: Employees hired on or after 1/1/96 are subject to Section 401(a)(17) of the Internal Revenue Code. This limit prohibits employers from making retirement plan contributions on the amount of annual salary in excess of $360,000 for 2026. If you are in this category, you may see your 403(b) contributions reduced and/or stopped within a calendar year. This limit may be indexed for inflation in $5,000 increments, in future years.
