6.
Catch-Up Contributions
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
Figuring 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
2007 and 2008, the limit is $5,000
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.
You can use Worksheet C in chapter 9 to figure your limit on catch-up contributions.
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