Can I contribute 100% to a 403(b) plan? | Ep.68

In this episode, we dive into a question that many employees with access to a 403(b) retirement plan wonder about: Is it possible to contribute 100% of my salary to my 403(b) plan?

The short answer? Yes, technically, you can aim to contribute up to 100% of your salary, but there are important limits to keep in mind. The IRS sets annual contribution limits that apply to both 403(b) and 401(k) plans. For 2024, the cap on employee contributions is set at $23,000, with an additional "catch-up" contribution of $7,500 if you're 50 or older, allowing for a maximum of $30,500 if you qualify. The total contributions, which include any employer matching, can’t exceed $69,000 or 100% of your compensation, whichever amount is lower.

In this episode, we’ll break down what these limits mean for you, how to make the most of your 403(b), and how to avoid overcontributing. Tune in to learn more about strategizing for retirement within these guidelines and maximizing your savings without running into penalties.

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