IRS Publication 4546 – If your organization sponsors a 403(b) tax-sheltered annuity plan, staying compliant with IRS rules is essential to avoid costly penalties, protect participant benefits, and maintain tax advantages. IRS Publication 4546, titled the 403(b) Plan Checklist, is the official IRS tool designed exactly for this purpose.
This free, easy-to-use checklist helps public schools, universities, nonprofits, hospitals, and other 501(c)(3) organizations quickly review key compliance areas. The latest revision (August 2021) remains the current version as of 2026, with core requirements unchanged even as contribution limits and some rules (like SECURE 2.0 catch-up enhancements) have evolved.
Download the official PDF here: IRS Publication 4546 (Rev. 8-2021)
In this comprehensive guide, we break down every item on the checklist, explain the “why” behind each rule, provide 2025–2026 contribution limits, highlight common mistakes, and share practical tips to keep your plan audit-ready.
What Is a 403(b) Plan?
A 403(b) plan (also called a tax-sheltered annuity or TSA) lets eligible employees of public schools, colleges, universities, and certain tax-exempt organizations save for retirement on a pre-tax or Roth basis. Employers can also contribute.
Key advantages include:
- Tax-deferred growth (or tax-free Roth distributions)
- Possible employer matching or nonelective contributions
- Loan and hardship distribution options (if the plan allows)
Only specific organizations qualify: public educational institutions and Section 501(c)(3) tax-exempt organizations.
Who Needs IRS Publication 4546?
Use this checklist if you are:
- A plan sponsor or administrator for a 403(b) plan
- A nonprofit HR or finance professional
- A school district benefits coordinator
- Working with 403(b) vendors or third-party administrators
Review it annually — ideally during open enrollment or year-end compliance audits.
The 10-Point 403(b) Plan Checklist from IRS Pub 4546 – Explained for 2026
The publication presents 10 critical yes/no questions. Check “Yes” for each if your plan complies. Here’s a detailed breakdown with current rules and action steps:
- Is your organization eligible to sponsor a 403(b) plan?
Only public schools/systems and 501(c)(3) organizations qualify. Churches and certain ministers have additional flexibility.
Action: Confirm your organization’s tax status with IRS.gov or your tax advisor. - Has your organization adopted a written 403(b) plan and all required amendments?
A written plan document has been mandatory since December 31, 2009. Amendments effective 2010–2018 were due by June 30, 2020; post-2018 amendments by December 31, 2021 (or later remedial periods in some cases).
2026 tip: Ensure your document reflects SECURE 2.0 changes (e.g., higher catch-up limits for ages 60–63). - Are plan operations based on the written plan document terms?
What the plan says on paper must match real-world administration (contributions, distributions, loans, etc.).
Common mistake: Vendors handling loans or hardships without checking plan language. - Have all employees been given the opportunity to make salary deferrals (universal availability)?
If any employee can defer, all must have the effective opportunity — with limited exclusions (e.g., employees normally working <20 hours/week, nonresident aliens, those contributing ≤$200/year, students, or those in another 401(k)/457(b)/403(b) of the same employer).
“Part-time” alone is not an allowable exclusion.
2026 best practice: Notify all eligible employees annually in writing. - Are total contributions limited to comply with tax law?
2025 limits: Lesser of 100% of includible compensation or $70,000 (plus age 50+ catch-up).
2026 limits: Lesser of 100% of includible compensation or $72,000 (plus catch-up).
Includes employee deferrals + employer contributions. - If using the 15-year service catch-up, does the employee qualify?
Available only to employees with 15 years of full-time service with the same eligible employer.
Extra deferral = lesser of:- $3,000
- $15,000 minus prior 15-year catch-ups
- $5,000 × years of service minus all prior elective deferrals to the employer’s plans
Important: Coordinate with age 50+ catch-up (15-year applies first).
- Are elective deferrals (including catch-up and Roth) within IRS limits?
2025: $23,500 base + $7,500 age 50+ ($11,250 for ages 60–63 under SECURE 2.0)
2026: $24,500 base + $8,000 age 50+ ($11,250 for ages 60–63)
Total with 15-year catch-up can reach higher amounts (e.g., up to ~$26,000–$28,000 base in recent years depending on qualification). - If your plan offers 5-year post-severance contributions, are they nonelective only?
Only employer nonelective contributions (not elective deferrals) may be made for up to 5 years after severance. - Are you and your vendors properly administering participant loans?
Enforce repayments and limit to the lesser of 50% of vested balance or $50,000 (with offsets for prior loans).
Missed repayments = deemed distribution + taxes/penalties. - Are hardship distributions properly documented and limited?
Must be for an “immediate and heavy financial need” and only the amount necessary.
Safe-harbor reasons include medical, home purchase, tuition, eviction/foreclosure prevention, funeral, or home casualty repair.
403(b) plans can use summary substantiation methods.
Key: Document everything — plan sponsor (not the employee) determines eligibility.
How to Use the Checklist Effectively?
- Print or download the PDF and review with your TPA/vendor annually.
- Click the “More →” links in the official PDF for IRS examples and Fix-It Guide references.
- If you answer “No” to any item, visit the IRS 403(b) Plan Fix-It Guide for self-correction options (many fixes are penalty-free if caught early).
Common 403(b) Compliance Mistakes & Fixes (2026)
- Failure to update written plan → Adopt remedial amendments promptly.
- Universal availability violations → Re-open eligibility and make corrective contributions.
- Excess deferrals → Distribute excess + earnings by April 15 of the following year.
- Improper loans/hardships → Repay or recharacterize as taxable distributions.
Many errors qualify for the IRS’s self-correction program under Revenue Procedure 2021-30 (or successors).
Additional Trusted IRS Resources (All Current as of 2026)
- Publication 4483: 403(b) Tax-Sheltered Annuities for Plan Sponsors
- Publication 4482: 403(b) Tax-Sheltered Annuities for Participants
- Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans) – updated January 2026
- 403(b) Fix-It Guide: irs.gov/retirement-plans/403b-plan-fix-it-guide
- Contribution Limits page: irs.gov/retirement-plans/plan-participant-employee/retirement-topics-403b-contribution-limits
Final Thoughts: Make Compliance Routine
IRS Publication 4546 is your first line of defense against operational failures that could trigger audits, excise taxes, or disqualification. By reviewing the 10 checklist items each year and staying current with annual limits ($24,500 elective deferral + enhanced catch-ups in 2026), your organization can confidently offer this valuable benefit while protecting its tax-exempt status.
Pro tip: Bookmark the PDF and set a calendar reminder every October for your annual 403(b) compliance review.
Need help? Consult a qualified retirement plan advisor or contact the IRS at 877-829-5500. For plan-specific guidance, reach out to your third-party administrator.
Stay compliant. Protect your plan. Empower your employees’ retirement.
This article is for informational purposes only and is not tax or legal advice. Always verify the latest rules directly from IRS.gov, as limits and procedures are subject to annual updates.