Understanding Retirement Plan Limits
Retirement plans are an important part of your financial security. Knowing the annual contribution limits helps you make the most of your benefits.
Each year, the IRS sets limits on how much you can contribute to plans such as 401(k), 403(b), and IRAs. These limits may change based on cost-of-living and IRS rules.
As part of your benefits at Iowa, these plans help you prepare for a secure future. This page provides the latest contribution limits, catch-up options/requirements, and key details to help you plan effectively.
2026 Contribution Limits at a Glance
| Retirement plan and/or Catch-up Option | 2026 Limit |
|---|---|
| Annual Compensation Limit - hired before Jan. 1, 1996 - This limit only applies to the mandatory & voluntary 403(b) accounts. | $466,666.67 |
| Annual Compensation Limit This limit applies to 401(a) and 403(b) mandatory and voluntary plans of employees hired after Jan. 1, 1996. | $360,000 |
| Elective Deferrals - 403(b) and 457(b) | $24,500 |
| Catch-up Contributions (Age 50+) | $8,000 |
| Super Catch-up Contributions (Age 60 - 63) | $11,250 (no change from 2025) |
| Defined Contribution Limits | $72,000 |
Prior Years Contribution Limits
| Retirement plan | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Annual Compensation Limit - hired before Jan. 1, 1996 - This limit only applies to the mandatory & voluntary 403(b) accounts. | $466,666.67 | $460,000 | $440,000 | $380,000 | $386,666.67 |
| Annual Compensation Limit This limit applies to 401(a) and 403(b) mandatory and voluntary plans of employees hired after Jan. 1, 1996. | $350,000 | $345,000 | $330,000 | $305,000 | $290,000 |
| Elective Deferrals - 403(b) and 457(b) | $23,500 | $23,000 | $22,500 | $20,500 | $19,500 |
| Catch-up Contributions (Age 50+) | $7,500 No change in 2025 | $7,500 No change in 2024 | $7,500 | $6,500 | $6,500 |
| Catch-up Contributions (Age 60 - 63) | $11,250 | N/A | N/A | N/A | N/A |
| Defined Contribution Limits | $70,000 | $69,000 | $66,000 | $61,000 | $58,000 |
Contribution Limits Explained
Annual Compensation Limits
explain pre-1996 vs. post-1996 rules
Elective Deferrals
403(b) and 457(b) limits
Defined Contribution Limits
Combined employer + employee contributions
Catch-up Contributions for Eligible Employees
- Age 50+ catch-up limit
- age 60-63 enhhanced catch-up rule
- Examples of combined totals (e.g., $31,000 and $34750)
Note about pre-tax vs. roth options
Employees age 50 or older can contribute additional money to their voluntary 403(b) and 457(b) plans, known as catch-up contributions. Plan participants are limited to how much money they may contribute as catch-up each year.
The IRS catch-up contribution limit for 2025 is $7,500. When combined with the $23,500 403(b)/457(b) annual limit for everyone else, employees age 50 or older may save $31,000.
Beginning in 2025, there’s a new IRS catch-up limit for employees who are 60 to 63. During that age range, employees are allowed to contribute higher catch-up amounts. For 2025, the new catch-up amount for 60 to 63-year-olds is $11,250. When combined with the $23,500 limit for 403(b) and 457(b) plans, employees may save up to $34,750.
When electing your catch-up contribution amounts in Employee Self-Service, you may choose between pre-tax and Roth (after-tax) contributions.
| 2025 MaxiMum limits | 2024 Maximum limits | |
|---|---|---|
| VRSP 403(b) and 457(b) Contribution Maximum | $23,500 | $23,000 |
| Catch-up contribution limit (age 50-59 and 64+) | $7,500 | $7,500 |
| Catch-up contribution limit (age 60, 61, 62, 63) New limit effective Jan. 1, 2025 | $11,250 | N/A |
VRSP
The amount you may defer to the Voluntary Retirement Savings 403(b) account is limited. Our VRSP system uses calculations based on the monthly salary and does not include compensation paid for short-term appointments (such as temporary summer appointments) outside your "normal" salary.
How does participation in the 457(b) plan affect your VRSP?
You can participate in the Voluntary Retirement Savings Program (VRSP), the 457(b) plan, or both. For 2025, the maximum allowable contribution is $23,500 for each plan or $47,000 for both programs. The system will take your VRSP contribution first, and then your 457(b) deduction.