Can I Contribute to Both a 403(b) and 457? 2026 Limits for MA Educators
By Tim Hayes, Financial Advisor for the Public and Not-for-Profit Sector
2026 IRS Contribution Limits.
| Name of Retirement Plan | Basic Contribution Limit | Age 50 and up Catch-Up | Basic + Age Fifty |
|---|---|---|---|
| 403(b) Retirement Plan | $24,500 per year deferral | $8,000 per year | $32,500 |
| 457 Retirement Plan | $24,500 per year deferral | $8,000 per year | $32,500 |
| Age 60, 61, 62, and 63 | $24,500 per year deferral | $11,250 per year | $35,750 |
| 403b Special Catchup | $24,500 per year deferral | $3,000 per year | $27,500 |
| 457 Special Catchup | $49,000 per year deferral | no other catch-up | $49,000 |
| Public School Employees Are Eligible for Both a 403b and 457 | $49,000 per year deferral | $16,000 per year | $65,000 |
How Public Educators Can Save More Than Most Workers
Discover the maximum contribution limits for 403(b) and 457 retirement plans available to public school educators. Learn how educators can save more pre-tax and use catch-up options for additional savings.
Can I Contribute to a 403(b) and 457?
Yes. Public school educators, including university professors and administrators, can save more pre-tax than many other workers. That’s because educators are eligible for two retirement plans, each with unique catch-up options.
In 2026, an individual can contribute $24,500 to a 403(b) plan and a 457 plan. Those 50 or older can also contribute an additional $8,000 catch-up to both plans. However, if your 2025 Box 3 (FICA) wages exceeded $150,000, the IRS now requires that these catch-up contributions to both plans be made as Roth (after-tax). In 2026, there is an additional catch-up option for people aged 60–63, who can use $11,250 instead of $8,000 for their catch-up. (Roughly 2% of Massachusetts educators are impacted by the Roth requirement)
Most education professionals only use their 403(b). You’re also eligible for a 457 — here’s how using both changes the math →
403b and 457 Plan Contribution Catch-Up Rules and Hidden Pitfalls
The 403(b) catch-up allows educators with low 403(b) savings who have worked 15 years with the same employer to save an additional $3,000 per year for five years (toward the 403(b) plan maximum).
The 403(b) Catch-Up Trap
One problem with the 403(b) catch-up is tracking. Any catchup contributions above the annual basic limit are automatically credited first against the “15-Year” rule. This means an employee aged 50 or older could unknowingly use up their larger “Age 50+” catch-up allowance without realizing it. Most districts do not monitor this.
Key Point: Using a 403(b) plan, including its catch-ups, does not affect your ability to contribute to a 457 plan and its catch-ups if eligible.
The Powerful 457 "Last Three Years" Catch-Up
The 457 plan offers a substantial “last three years” catch-up, allowing contributions up to $49,000 per year as you near retirement. This special provision replaces the 457 plan’s own “Age 50+” catch-up during those three years.
Key Point: Using this special 457 catch-up does not affect your ability to contribute to a 403(b) plan, including its catch-ups. Crucially, the new 2026 IRS Roth mandate for high earners ($150,000+) does not apply to this specific catch-up; these contributions can still be made on a 100% pre-tax basis regardless of your income level.
Not everyone can afford to save the maximum; however, it is good to know that educators have a well-deserved potential benefit.
Your school system provides you with a list of 403(b) companies (sometimes called an “approved vendor list”). The 457 plan is different. The city or town usually provides one company. Both typically give you a broad range of investment options.
How to Access Your Plans: Vendor Lists & System Links
Find Your School System’s Approved 403(b) Vendors
MA Schools Systems A-L
A
- Abington Public Schools
- Acton-Boxborough Regional School District
- Amesbury Public Schools
- Arlington Public Schools
- Ashland Public Schools
- Attleboro Public Schools
- Avon Public Schools
B
- Bedford Public Schools
- Bellingham Public Schools
- Belmont Public Schools
- Beverly Public Schools – I grew up in Beverly
- Billerica Public Schools
- Blue Hills Regional Technical School
- Boston Public Schools – Boston Sick Buyback Information
- Boxford Public Schools
- Braintree Public Schools
- Brookline Public Schools
C
- Canton Public Schools
- Carlisle Public Schools
- Carver Public Schools
- Chelmsford Public Schools
- Cohasset Public Schools
- Concord Public Schools
- Concord-Carlisle Regional School District
D
- Danvers Public Schools
- Dartmouth Public Schools – I have an office in Dartmouth
- Dedham Public Schools
- Dover Public Schools
- Dover Sherborn Regional School District
F
- Fall River Public Schools
- Foxborough Public Schools
- Framingham Public Schools
- Freetown Lakeville Regional Schools
G
H
- Hanover Public Schools
- Harvard Public Schools
- Holliston Public Schools
- Hopkinton Public Schools
- Hudson Public Schools
I
L
- Lawrence Public Schools
- Lexington Public Schools
- Lincoln Public Schools
- Lowell Public Schools
- Lynnfield Public Schools
MA School Systems M-W
M
- Malden Public Schools
- Manchester Essex Regional School District
- Mansfield Public Schools
- Martha’s Vineyard Regional High School
- Marshfield Public Schools
- Masconomet Regional School District
- Maynard Public Schools
- Melrose Public Schools
- Methuen Public Schools
- Middleborough Public Schools
- Milton Public Schools
- Minutemen Regional
N
- Natick Public Schools
- Needham Public Schools
- Newburyport Public Schools
- Newton Public Schools
- North Andover Public Schools
- North Attleborough Public Schools
- Northborough Southborough Regional School District
- North Reading Public Schools
- Norton Public Schools
- Norwood Public Schools
P
R
S
- Sandwich Public Schools
- Saugus Public Schools
- Scituate Public Schools
- Sherborn Public Schools
- South Shore Education Collaborative
- Stoneham Public Schools
- Stoughton Public Schools
- Sudbury Public Schools
T
W
- Wakefield Public Schools
- Waltham Public Schools
- Watertown Public Schools
- Wayland Public Schools
- Wellesley Public Schools
- Westford Public Schools
- Weston Public Schools
- Westport Public Schools
- Westwood Public Schools
- Weymouth Public Schools
- Whitman-Hanson Regional School District
- Wilmington Public Schools
- Winchester Public Schools
- Woburn Public Schools
Why Work with a Massachusetts 403b and 457 Retirement Plans Specialist?
Since 1990, I’ve been a financial advisor focusing on helping educators establish, invest in, and manage their 403(b) plans. During this time, I have built a wealth of knowledge about your retirement system, the Social Security offset/Windfall Elimination Provision (Repealed in 2024), 403(b) plans, and other financial matters specific to educators.
Because I am an independent financial advisor and provide flexible payment options (fee-only, hourly rate, or commission), I can work with most of the companies in your school system’s 403(b) plan. (Partial list of companies I work with: Fidelity, American Funds, Putnam, MFS, Aspire, Security Benefit, Axa Insurance, Invesco).
Close to Forty Years
Tim Hayes has been my financial advisor for close to forty years. He is sincere and direct in his approach to supporting his clients. I highly recommend Tim to anyone seeking a financial advisor who is skilled, client-centered, and practices with integrity.
Julia Concannon
Client
Testimonial Disclosure: Testimonials are based on individual client experiences and may not represent the experiences of all clients. They are not a guarantee of future performance. Each client’s situation is unique. No compensation has been provided for these testimonials.
Strategic Advice: How to Maximize Your 403b and 457 Plan Contributions
- School systems should consider removing the fifteen-year catch-up from their 403(b) plan unless they are prepared to track it correctly once it starts. Mis-tracking can quietly erase future catch-up eligibility for older employees.
- Any employee who is saving the maximum in a 403(b) plan and wants to save more money can usually open a 457 plan.
- If you are eligible, you can use the 457 catch-ups with the 403(b) plan, plus the 403b age 50+ catch-up, making it an excellent option for any educator who wants to defer sick buybacks in their final working years.
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