The most that can be contributed to your 403(b) account is the lesser of your limit on annual additions or your limit on elective deferrals.
If you will be age 50 or older by the end of the year, you may also be able to make additional catch-up contributions. These additional contributions cannot be made with after-tax employee contributions.
You are eligible to make catch-up contributions if:
- You will have reached age 50 by the end of the year, and
- The maximum amount of elective deferrals that can be made to your 403(b) account have been made for the plan year.
The maximum amount of catch-up contributions is the lesser of:
- $5,500 for 2009 (unchanged for 2010), or
- The excess of your compensation for the year, over the elective deferrals that are not catch-up contributions.
When figuring allowable catch-up contributions, combine all catch-up contributions made by your employer on your behalf to the following plans.
- Qualified retirement plans. (To determine if your plan is a qualified plan, ask your plan administrator.)
- 403(b) plans.
- Simplified employee pension (SEP) plans.
- SIMPLE plans.
The total amount of the catch-up contributions on your behalf to all plans maintained by your employer cannot be more than the annual limit. For 2009 the limit is $5,500 (unchanged for 2010).
If you are eligible for both the 15-year rule increase in elective deferrals and the age 50 catch-up, allocate amounts first under the 15-year rule and next as an age 50 catch-up.
Catch-up contributions do not affect your MAC. Therefore, the maximum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contribution.