Publication 571

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## Figuring the Limit on Elective Deferrals(p9) |

You can use Part II of
Worksheet 1
in chapter 9 to figure the limit on elective deferrals.

taxmap/pubs/p571-014.htm#en_us_publink1000239708## Example(p9) |

Floyd has figured his limit on annual additions. The only other
component needed before he can determine his MAC for 2011 is his limit on
elective deferrals.

taxmap/pubs/p571-014.htm#en_us_publink1000239709## Figuring Floyd's limit on elective deferrals.(p9) |

Floyd has been employed with his current employer for less than
15 years. He is not eligible for the special 15-year increase. Therefore, his
limit on elective deferrals for 2011 is $16,500, as shown in
Table 4-2.

Floyd's employer will not make any nonelective contributions
to his 403(b) account and Floyd will not make any after-tax contributions.
Additionally, Floyd's employer does not offer a Roth contribution program.

taxmap/pubs/p571-014.htm#en_us_publink1000239710## Figuring Floyd's MAC(p10) |

Floyd has determined that his limit on annual additions for 2011
is $49,000 and his limit on elective deferrals is $16,500. Because elective
deferrals are the only contributions made to Floyd's account, the maximum amount
that can be contributed to a 403(b) account on Floyd's behalf in 2011 is
$16,500, the lesser of both limits.

Part I. Limit on Annual Additions | |||

1. | Enter your includible compensation for your most recent year of service | 1. | $70,475 |

2. | Maximum:
- For 2010, enter $49,000
- For 2011, enter $49,000
| 2. | 49,000 |

3. | Enter the lesser of line 1 or line 2. This is your limit on annual additions | 3. | 49,000 |

Caution:
If you had only nonelective contributions, skip Part II and enter the amount
from line 3 on line 18.
| |||

Part II. Limit on Elective Deferrals | |||

4. | Maximum contribution:
- For 2010, enter $16,500
- For 2011, enter $16,500
| 4. | 16,500 |

Note.
If you have at least 15 years of service with a qualifying organization,
complete lines 5 through 17. If not, enter zero (-0-) on line 16 and go to line
17.
| |||

5. | Amount per year of service | 5. | 5,000 |

6. | Enter your years of service | 6. | |

7. | Multiply line 5 by line 6 | 7. | |

8. | Enter the total of all elective deferrals made for you by the qualifying organization for prior years | 8. | |

9. | Subtract line 8 from line 7. If zero or less, enter zero (-0-) | 9. | |

10. | Maximum increase in limit for long service | 10. | 15,000 |

11. | Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule | 11. | |

12. | Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule | 12. | |

13. | Add lines 11 and 12 | 13. | |

14. | Subtract line 13 from line 10 | 14. | |

15. | Maximum additional contributions | 15. | 3,000 |

16. | Enter the least of lines 9, 14, or 15. This is your increase in the limit for long service | 16. | -0- |

17. | Add lines 4 and 16. This is your limit on elective deferrals | 17. | 16,500 |

Part III. Maximum Amount Contributable | |||

18. |
- If you had only nonelective contributions, enter the amount
from line 3. This is your MAC.
- If you had only elective deferrals, enter the lesser of
lines 3 or 17. This is your MAC.
- If you had both elective deferrals and nonelective contributions, enter the amount from line 3. This is your MAC. (Use the amount on line 17 to determine if you have excess elective deferrals as explained in chapter 7.)
| 18. | $16,500 |

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