Tax-Sheltered 
Annuity Plans 
(403(b) Plans)

For 2010, the adjusted gross income limitations remain unchanged at $55,500 for married filing jointly filers, $41,625 for head of household filers, and at $27,750 for single, married filing separately, or qualifying widow(er) with dependent child filers. See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), on page 18 for additional information.

For 2010, the limit on elective deferrals remains unchanged at $16,500.

For 2010, the limit on annual additions remains unchanged at $49,000.

For 2011, the adjusted gross income limitations have increased from $55,500 to $56,500 for married filing jointly filers, from $41,625 to $42,375 for head of household filers, and from $27,750 to $28,250 for single, married filing separately, or qualifying widow(er) with dependent child filers. See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), on page 18 for additional information.

For 2011, the limit on elective deferrals remains unchanged at $16,500.

For 2011 the limit on annual additions remains unchanged at $49,000.

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.

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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 2011.
• Determine the maximum amount that could have been contributed to your 403(b) account in 2010.
• 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, Pension and Annuity Income.
• 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:  
  –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 2010 and the maximum amount that can be contributed to your 403(b) account in 2011.

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, 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 (saver's credit).

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