Tax-Sheltered Annuity Plans (403(b) Plans) - For Employees of Public Schools and Certain Tax-Exempt Organizations

Sep 19, 2026

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Publication 571 explains the tax rules governing 403(b) (tax-sheltered annuity) plans for employees of public schools and certain tax-exempt organizations. It highlights updates for 2025 and 2026, including catch-up contribution changes, retirement savings contributions credit income limits, and increased limits on elective deferrals and annual additions. It also summarizes SECURE 2.0 Act–related provisions such as PLESAs, safe harbor deferral-only 403(b) plans, matching for qualified student loan payments, and other distribution and credit rules.

LanguageEnglish

CategoryForms

FormatPDF

Pages32

Reading Time11 min

AccessFree to download

What’s New for 2025

What’s New for 2026

Reminders

Pension-Linked Emergency Savings Accounts (PLESAs)

Safe harbor deferral-only section 403(b) plans

Military spouse retirement plan eligibility credit

Other reminder topics

Introduction

Publication 571 (Rev. January 2026) Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations | Future Developments
For the latest information about developments related to Pub. 571, such as legislation enacted after it was published, [go to](go to IRS.gov/Pub571)[ ](go to IRS.gov/Pub571)[IRS.gov/Pub571](go to IRS.gov/Pub571) . | | --- | | What’s New for 2025
Catch-up contributions. Beginning 2025, people who reached the ages of 60, 61, 62, or 63 before the end of the tax year shall attain higher catch-up contributions between the greater of $10,000 or 150% of the previous catch-up limit, $7,500, in their 403(b) plans. | What’s New for 2026 Retirement savings contributions credit. For 2026, the adjusted gross income limitations have increased from $79,000 to $80,500 for married filing jointly filers; from $59,250 to $60,375 for head of household filers; and from $39,500 to $40,250 for single, married filing separately, or qualifying surviving spouse with dependent child filers. See chapter 10, Retirement Savings Contributions Credit (Saver's Credit) , for additional information. Limit on elective deferrals. For 2026, the limit on elective deferrals has increased from $23,500 to $24,500 . Limit on annual additions. For 2026, the limit on annual additions has increased from $70,000 to $72,000 . | | | | --- | --- | | Get forms and other information faster and easier at: | | | • [IRS.gov](IRS.gov) (English)
• [IRS.gov/Spanish](IRS.gov/Spanish) (Español)
• [IRS.gov/Chinese](IRS.gov/Chinese) (中文) | • [IRS.gov/Korean](IRS.gov/Korean) (한국어)
• [IRS.gov/Russian](IRS.gov/Russian) (Pусский)
• [IRS.gov/Vietnamese](IRS.gov/Vietnamese) (Tiếng Việt) | Reminders Pension-Linked Emergency Savings Accounts. Section 127 of the SECURE 2.0 Act of 2022 allows employers to add an optional feature to provide short-term savings accounts established and maintained in connection with a defined contribution retirement plan, including certain 403(b) plans, and are treated as a type of designated Roth account. Section 127 of the SECURE 2.0 Act of 2022 provides for the creation of Pension-Linked Emergency Savings Accounts (PLESAs) effective for plan years beginning after December 31, 2023. Safe harbor deferral-only section 403(b) plans. Section 121(b) of the SECURE 2.0 Act of 2022 permits certain eligible employers to have a safe harbor deferral-only section 403(b) plan for plan years beginning after December 31, 2023. Military spouse retirement plan eligibility credit. Section 112 of the SECURE 2.0 Act of 2022 provides a business credit for an eligible employer for participation and benefits to a military spouse within 2 months of being hired. Matching contributions on account of qualified student loan payments. Section 110 of the SECURE 2.0 Act of 2022 allows employers to include an optional feature that would enable them to make matching Publication 571 (Rev. 1-2026) Catalog Number 46581C Jan 7, 2026 Department of the Treasury Internal Revenue Service [www.irs.gov](www.irs.gov) contributions on account of employees’ qualified student loan payments under certain defined contribution retirement plans, including 403(b) plans. Section 110 of the SECURE 2.0 Act of 2022 applies to contributions made for plan years beginning after December 31, 2023. Credit for employer contributions. Section 102 of the SECURE 2.0 Act of 2022 adds an increased small employer pension plan startup cost credit for qualifying small employers with no more than 50 employees and a new credit based on matching and nonelective contributions made by qualifying small employers with no more than 100 employees. Qualified disaster recovery distributions. A qualified disaster recovery distribution is a distribution that meets certain criteria as described in the SECURE 2.0 Act of 2022. It is a distribution made from an eligible retirement plan to an individual whose main home was in a

FAQs

What key changes are included for 2025 403(b) plans?

The publication describes new catch-up contribution rules beginning in 2025, increasing higher catch-up contributions for individuals who reach certain ages before the end of the tax year.

What limits and credits changed for 2026 in 403(b) plans?

For 2026, it covers higher income limitations for the retirement savings contributions credit and increased limits for elective deferrals and annual additions in 403(b) plans.

What SECURE 2.0 provisions are highlighted as reminders?

Reminders include Pension-Linked Emergency Savings Accounts (PLESAs), safe harbor deferral-only 403(b) plans, military spouse retirement plan eligibility credits, matching contributions for qualified student loan payments, and rules affecting certain distributions.

Sep 19, 2026

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