Summary:
2026 Limits
- $24,500 limit for 2026 for all 403(b) accounts, including employee 403(b) contributions to the Basic Retirement Plan, any U-M 403(b) SRA (whether pre-tax or
Roth), and the new SECURE 2.0 Act Roth 403(b) SRA, and any other 403(b) plans you participate in through another employer
- The limit is $32,500 if you are age 50 or older by Dec. 31, 2026.
- The limit is $35,750 if you are age 60, 61, 62, or 63 by Dec. 31, 2026.
- The limit returns to $32,500 if you are age 64 by Dec. 31, 2026.
Viewing Your Limit Online
The Calculate Ret. Contribution panel on Wolverine Access self-service will display your projected 403(b) SRA contribution for the remainder of the current year and can recalculate it for the following year. Go to Wolverine Access and select the Faculty & Staff tab, select Employee Self-Service, click Benefits, and then click Calculate Ret. Contribution under Retirement Self Service. The panel will display the following fields:
Annual Limit on 403(b) Contributions
This is your total limit for 403(b) contributions. These include your voluntary contribution to the Basic Retirement Plan, and any 403(b) SRA contributions. The U-M match is a 401(a) contribution, which does not count against your 403(b) limit.
Base Salary
This is your base rate of pay; it does not include shift and administrative differential, overtime, shift bonus, incentive pay under the Medical Service Plan, longevity pay, or summer salary for instructional staff. Your contribution and the U-M contribution (if you are eligible) will be provided on all eligible compensation in each paycheck, up to federal limits once you are enrolled.
Basic Retirement Plan
This section projects your contribution and the U-M contribution (if you are eligible) using your current base salary.
Compulsory or Voluntary
You may voluntarily enroll in the Basic Retirement Plan at any time. Participation becomes compulsory upon reaching all three criteria: age 35, 100% full time appointment, and two years of service in an eligible faculty or staff position. The calculation illustrates which plan you are enrolled in and which amounts count against the limit.
How Your Limit is Calculated
Your annual limit on 403(b) contributions is calculated according to Internal Revenue Code (IRC) guidelines. By subtracting your contribution to the Basic Retirement Plan, what remains is the amount you can make in 403(b) SRA contributions.
General 403(b) Limit
For 2026, your limit is automatically $24,500. If your salary is less than $24,500 for 2026, your limit is your salary. However, you must still pay the FICA taxes (Social Security and Medicare), contributions for other benefit plans, and deductions such as parking and United Way.
Age 50 or Older Catch-Up
For 2026, your limit is increased by $8,000 if you are age 50 or older by Dec. 31, 2026, making it $32,500 instead of $24,500.
Age 60-63 Catch-Up
Starting in 2026, your limit is increased by $11,250 if you are age 60, 61, 62, or 63 by Dec. 31, 2026. This makes the limit $35,750 instead of $24,500 under the new catch-up. The limit returns to the $8,000 catch-up amount ($32,500 total limit) starting the year you turn age 64.
SECURE 2.0 Act
If you are subject to the SECURE 2.0 Act Roth mandate, 403(b) catch-up contributions (up to $8,000 if age 50 or older or up to $11,250 if age 60-63) can be made only by adding the SECURE Act Roth 403(b) SRA contribution. Your total 403(b) contributions will be capped at a maximum of $24,500 starting in 2026 if you are subject to the SECURE 2.0 Act Roth mandate. This includes pre-tax and/or non-SECURE Act Roth amounts. You must add the SECURE Act Roth 403(b) SRA contribution if you wish to defer more than $24,500 in 403(b) amounts starting in 2026.
Sample 403(b) Limit Calculation (2026 Limits)
Your salary = $50,000
Your 403(b) limit = $24,500
Your Basic Retirement Plan employee contribution = $50,000 x 5% = $2,500
Amount extra you could contribute to a 403(b) SRA = $24,500 - $2,500 = $22,000
SRA limit per pay period (monthly) = $22,000/12 = $1,834
Note: This example assumes you are eligible for the 5% employee contribution with 10% U-M contribution and you are younger than age 50.