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Publication 571

Figuring the Limit on Elective Deferrals(p10)

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


Floyd has figured his limit on annual additions. The only other component needed before he can determine his MAC for 2017 is his limit on elective deferrals.

Figuring Floyd's limit on elective deferrals.(p10)

Floyd has been employed with his current employer for less than 15 years. He isn’t eligible for the special 15-year increase. Therefore, his limit on elective deferrals for 2017 is $18,000 as shown in Table 4-2.
Floyd's employer won’t make any nonelective contributions to his 403(b) account and Floyd won’t make any after-tax contributions. Additionally, Floyd's employer doesn’t offer a Roth contribution program.

Figuring Floyd's MAC(p10)

Floyd has determined that his limit on annual additions for 2017 is $54,000 and his limit on elective deferrals is $18,000. 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 2017 is $18,000, the lesser of both limits.

Table 4-2. Worksheet 1. Maximum Amount Contributable (MAC)

Note. Use this worksheet to figure your MAC.
Part I. Limit on Annual Additions  
1.Enter your includible compensation for your most recent year of service 1.$70,475
  • For 2016, enter $53,000
  • For 2017, enter $54,000
3.Enter the lesser of line 1 or line 2. This is your limit on annual additions 3.54,000
 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 2016, enter $18,000
  • For 2017, enter $18,000
 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 service10.15,000
11. Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year rule11.
12.Enter the aggregate amount of all designated Roth contributions permitted for prior years under the 15-year rule12.
13.Add lines 11 and 1213.
14. Subtract line 13 from line 1014.
15. Maximum additional contributions15. 3,000
16.Enter the least of line 9, 14, or 15. This is your increase in the limit for long service16.-0-
17.Add lines 4 and 16. This is your limit on elective deferrals17.18,000
 Part III. Maximum Amount Contributable  
  • 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 line 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.)