skip navigation

Search Help
Navigation Help


Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #


FAQs
Forms
Publications
Tax Topics


Comments
About Tax Map

previous page Previous Page: Publication 571 - Tax-Sheltered Annuity Plans (403(b) Plans) - Limit on Annual Additions
next page Next Page: Publication 571 - Tax-Sheltered Annuity Plans (403(b) Plans) - 15-Year Rule
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication
taxmap/pubs/p571-012.htm#en_us_publink1000129405

Chapter 4
Limit on Elective Deferrals(p9)

spacer

previous topic occurrence Limit on Elective Deferrals next topic occurrence

The second, and final component of MAC is the limit on elective deferrals. This is a limit on the amount of contributions that can be made to your account through a salary reduction agreement.
A salary reduction agreement is an agreement between you and your employer allowing for a portion of your compensation to be directly invested in a 403(b) account on your behalf. You can enter into more than one salary reduction agreement during a year.
EIC
More than one 403(b) account. If, for any year, elective deferrals are contributed to more than one 403(b) account for you (whether or not with the same employer), you must combine all the elective deferrals to determine whether the total is more than the limit for that year.
403(b) plan and another retirement plan. If, during the year, contributions in the form of elective deferrals are made to other retirement plans on your behalf, you must combine all of the elective deferrals to determine if they are more than your limit on elective deferrals. The limit on elective deferrals applies to amounts contributed to:
  • 401(k) plans, to the extent excluded from income,
  • Section 501(c)(18) plans, to the extent excluded from income,
  • SIMPLE plans,
  • Simplified employee pension (SEP) plans, and
  • All 403(b) plans.
taxmap/pubs/p571-012.htm#en_us_publink1000129407

Roth contribution program.(p9)


rule
spacer

Your 403(b) plan may allow you to designate all or a portion of your elective deferrals as Roth contributions. Elective deferrals designated as Roth contributions must be maintained in a separate Roth account and are not excludable from your gross income.
The maximum amount of contributions allowed under a Roth contribution program is your limit on elective deferrals, less your elective deferrals not designated as Roth contributions. For more information on the Roth contribution program, see Publication 560, Retirement Plans for Small Business.
taxmap/pubs/p571-012.htm#en_us_publink1000129408

Excess elective deferrals.(p9)
spacer

If the amount contributed is more than the allowable limit, you must include in your gross income for the year contributed, the excess that is not a Roth contribution.
taxmap/pubs/p571-012.htm#en_us_publink1000129409

General Limit(p9)


rule
spacer

previous topic occurrence General Limit next topic occurrence

Under the general limit on elective deferrals, the most that can be contributed to your 403(b) account through a salary reduction agreement for 2008 is $15,500 and $16,500 for 2009. This limit applies without regard to community property laws.
previous pagePrevious Page: Publication 571 - Tax-Sheltered Annuity Plans (403(b) Plans) - Limit on Annual Additions
next pageNext Page: Publication 571 - Tax-Sheltered Annuity Plans (403(b) Plans) - 15-Year Rule
 Use previous pagenext page to find additional occurrences of topic items.Index for this Publication