15-Year Rule

If you have at least 15 years of service with an educational organization (such as a public or private school), hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization) and it is allowed by the terms of the plan document, the limit on elective deferrals to your 403(b) account is increased by the least of:

1. $3,000;

2. $15,000, reduced by the sum of:

a. The additional pre-tax elective deferrals made in

prior years because of this rule, plus

b. The aggregate amount of designated Roth contri butions permitted for prior years because of this rule; or

3. $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years.

If you qualify for the 15-year rule (sometimes referred to as the “special section 403(b) catch-up” or the “years-of-service catch-up”), your elective deferrals under this limit can be as high as $26,500 for 2025 and $27,500 for 2026.

To determine whether you have 15 years of service with your employer, see Years of Service next.