taxmap/pubs/p571-000.htm#en_us_publink1000129333Publication 571
For Employees of Public Schools and Certain
Tax-Exempt Organizations
Rollovers to Roth IRA.(p1)
Beginning January 1, 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted by making a rollover into a Roth IRA subject to the restrictions that currently apply to rollovers from a traditional IRA into a Roth IRA.
taxmap/pubs/p571-000.htm#en_us_publink1000129336Retirement savings contribution credit.(p1)
For 2008, the adjusted gross income limitations have increased from $52,000 to $53,000 for married filing jointly filers, from $39,000 to $39,750 for head of household filers, and from $26,000 to $26,500 for single, married filing separately, or qualifying widow(er) with dependent child filers. See chapter 10, Retirement Savings Contribution Credit, on page 19, for additional information.
taxmap/pubs/p571-000.htm#en_us_publink1000129337Limit on elective deferrals.(p1)
For 2008, the limit on elective deferrals remains unchanged at $15,500.
taxmap/pubs/p571-000.htm#en_us_publink1000129338Limit on annual additions.(p1)
For 2008, the limit on annual additions has increased from $45,000 to $46,000.
taxmap/pubs/p571-000.htm#en_us_publink1000125686Temporary waiver of the minimum required distribution.(p1)
For calendar year 2009, there is a temporary waiver of the required minimum distribution from a 403(b) plan. See Minimum Required Distributions in chapter 8, for more information.
taxmap/pubs/p571-000.htm#en_us_publink1000129340Retirement savings contribution credit.(p2)
For 2009, the adjusted gross income limitations have increased from $53,000 to $55,500 for married filing jointly filers, from $39,750 to $41,625 for head of household filers, and from $26,500 to $27,750 for single, married filing separately, or qualifying widow(er) with dependent child filers. See chapter 10, Retirement Savings Contribution Credit, on page 19, for additional information.
taxmap/pubs/p571-000.htm#en_us_publink1000129341Limit on elective deferrals.(p2)
For 2009, the limit on elective deferrals has increased from $15,500 to $16,500.
taxmap/pubs/p571-000.htm#en_us_publink1000129342Limit on annual additions.(p2)
For 2009 the limit on annual additions has increased from $46,000 to $49,000.
taxmap/pubs/p571-000.htm#en_us_publink100076797Final regulations.(p2)
Final income tax regulations pertaining to tax-sheltered annuities within the meaning of section 403(b) of the Internal Revenue Code will, generally, be effective for tax years beginning after December 31, 2008. For more information, see T.D. 9340, which is on page 487 of Internal Revenue Bulletin 2007-36 at
www.irs.gov/pub/irs-irbs/irb07–36.pdf.
Rollovers by nonspouse beneficiaries.(p2)
For distributions after December 31, 2006, a nonspouse beneficiary may make a direct rollover of a distribution from an eligible retirement plan of a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. The transfer will be treated as an eligible rollover distribution and the receiving individual retirement plan will be treated as an inherited individual retirement account or annuity.
taxmap/pubs/p571-000.htm#en_us_publink1000129345Rollover of after-tax contributions.(p2)
For tax years beginning after December 31, 2006, participants in a 403(b) plan can roll over after-tax contributions to an eligible retirement plan, and roll over after-tax contributions from an eligible retirement plan into a 403(b) plan, if the rollover is made through a direct trustee-to-trustee transfer.
taxmap/pubs/p571-000.htm#en_us_publink1000129346Retired public safety officers.(p2)
For tax years beginning after December 31, 2006, if you are an eligible retired public safety officer, distributions of up to $3,000, made directly from your 403(b) plan to pay accident, health, or long-term care insurance are not included in your taxable income. The premiums can be for you, your spouse, or your dependents.
A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew.
For additional information, see Publication 575, Pension and Annuity Income.
taxmap/pubs/p571-000.htm#en_us_publink100012934790-24 Transfer.(p2)
After September 24, 2007, you may no longer make a 90-24 transfer without your employer's involvement.
taxmap/pubs/p571-000.htm#en_us_publink1000129348Photographs of missing children.(p2)
The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan.
In this publication, you will find information to help you:
- Determine the maximum amount that can be contributed to your 403(b) account in 2009.
- Determine the maximum amount that could have been contributed to your 403(b) account in 2008.
- Identify excess contributions.
- Understand the basic rules for claiming the retirement savings contributions credit.
- Understand the basic rules for distributions and rollovers from 403(b) accounts.
This publication does not provide specific information on the following topics.
- Distributions from 403(b) accounts. This is covered in Publication 575.
- Rollovers. This is covered in Publication 590, Individual Retirement Arrangements (IRAs).
- Withdrawals, repayments, and loans from 403(b) annuity contracts for taxpayers who suffered economic losses as a result of: –Hurricane Katrina, Rita, or Wilma, are covered in Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita, and Wilma.
–The May 4, 2007, Kansas storms and tornadoes, are covered in Publication 4492-A, Information for Taxpayers Affected by the May 4, 2007, Kansas Storms and Tornadoes.
–Damage in the Midwestern disaster areas, are covered in Publication 4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas.
This publication is organized into chapters to help you find information easily.
Chapter 1 answers questions frequently asked by 403(b) plan participants.
Chapters 2 through 6 explain the rules and terms you need to know to figure the maximum amount that could have been contributed to your 403(b) account for 2008 and the maximum amount that can be contributed to your 403(b) account in 2009.
Chapter 7 provides general information on the prevention and correction of excess contributions to your 403(b) account.
Chapter 8 provides general information on distributions, and transfers and rollovers.
Chapter 9 provides blank worksheets that you will need to accurately and actively participate in your 403(b) plan. Filled-in samples of most of these worksheets can be found throughout this publication.
Chapter 10 explains the rules for claiming the retirement savings contributions credit.
taxmap/pubs/p571-000.htm#en_us_publink1000129350We welcome your comments about this publication and your suggestions for future editions.
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www.irs.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.
Useful items
You may want to see:
Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers 575 Pension and Annuity Income 590 Individual Retirement Arrangements (IRAs) Form (and Instructions) W-2: Wage and Tax Statement 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 5329: Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts 5330: Return of Excise Taxes Related to Employee Benefit Plans 8915: Qualified Hurricane Retirement Plan Distributions and Repayments
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Next Page: Publication 571 - Tax-Sheltered Annuity Plans (403(b) Plans) - 403(b) Plan Basics
