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403b question
Old 08-05-2012, 02:29 PM   #1
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403b question

I have not maxed out 403b...if i have some extra money could i put into the years past 403b? just wondering
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Old 08-05-2012, 02:55 PM   #2
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TIAA-CREF - 403(b) Outlook: Catch-Up Contributions

sounds like there is an additional catchup allowance besides that allowed in a 401K.
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What is the rule? The maximum amount of elective deferrals that employees can contribute to a 403(b) or 401(k) plan in 2008 under IRC Section 402(g) is $15,500. (This amount is adjusted for inflation in $500 increments.) 403(b) vendors must take reasonable steps to help ensure that 403(b) elective deferrals made to their investment products do not exceed the Section 402(g) limit

The 15-Year Rule allows employees to exceed the otherwise applicable 402(g) limit if they have at least 15 years of service with the same employer which is a qualifying tax-exempt organization — teaching institution, hospital, church, home health care organization, or health and welfare service agency. Under the 15-year catch-up, if an employee’s elective deferrals in prior years were less than the 402(g) limit, he or she may be able to make deferrals of up to $3,000 over the applicable 402(g) limit for the current year, subject to a lifetime limit of $15,000. This 15-year rule is available only under 403(b) plans (not 401(k) or 457(b) plans). This 15-year catch-up is in addition to the Age 50+ Catch-Up discussed below.
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Old 08-05-2012, 10:58 PM   #3
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Quote:
Originally Posted by kaneohe View Post
TIAA-CREF - 403(b) Outlook: Catch-Up Contributions

sounds like there is an additional catchup allowance besides that allowed in a 401K.
***********************************************

What is the rule? The maximum amount of elective deferrals that employees can contribute to a 403(b) or 401(k) plan in 2008 under IRC Section 402(g) is $15,500. (This amount is adjusted for inflation in $500 increments.) 403(b) vendors must take reasonable steps to help ensure that 403(b) elective deferrals made to their investment products do not exceed the Section 402(g) limit

The 15-Year Rule allows employees to exceed the otherwise applicable 402(g) limit if they have at least 15 years of service with the same employer which is a qualifying tax-exempt organization — teaching institution, hospital, church, home health care organization, or health and welfare service agency. Under the 15-year catch-up, if an employee’s elective deferrals in prior years were less than the 402(g) limit, he or she may be able to make deferrals of up to $3,000 over the applicable 402(g) limit for the current year, subject to a lifetime limit of $15,000. This 15-year rule is available only under 403(b) plans (not 401(k) or 457(b) plans). This 15-year catch-up is in addition to the Age 50+ Catch-Up discussed below.
so is the limit 22,000. or 22,000 plus 3,000 to make 25,000?
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Old 08-06-2012, 12:43 AM   #4
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Assuming you meet all the conditions: 17K + 3K + 5.5K = 25.5K
confirm w/ your HR dept.
conditions relate to age> 50; undercontribution in the past; lifetime limit on undercontribution catchup; 15 yrs of service

************************************************** **********

https://401k.fidelity.com/public/con...bContLimitCalc


403(b) Contribution Limit Calculation Tools

Current tax laws provide significant opportunities for retirement savers. Fidelity's Contribution Limit Calculation Tools will help you make the most of your 403(b) plan, based on your specific circumstances.
Go to the calculator


If you need to access the 2011 Contribution Limit Calculator for the purpose of doing your taxes or to determine whether you contributed too much to your plan in 2011, you can access the 2011 calculator here.
Your 2012 contribution opportunities
If you contribute the maximum basic salary deferral limit, and you qualify for both of the catch-up provisions described below, you have the potential to contribute up to $25,500 to your 403(b) plan during 2012.
Basic salary deferral limit: $17,000 in 2012.
403(b) Lifetime Catch-up: You may be eligible to defer up to an additional $3,000.
Age 50+ Catch-up: If you are age 50 or older, you may be eligible to defer up to an additional $5,500 in 2012.
Total 2012 contribution limit on combined employee/employer contributions: 100% of your includible compensation or $50,000, whichever is less.
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