Generally, contributions to your 403(b) account for 2001 are limited to the least of:

• The MEA,
• The limit on annual additions, or
• The limit on elective deferrals.

Depending upon the type of contributions made to your 403(b) account, only two of the limits may apply to you for 2001.

General contribution limits. If all of the contributions made to your 403(b) account were elective deferrals (salary reductions), you will need to figure all three of the limits listed above. Your MAC is the least of the three limits.

Only nonelective contributions. If all of the contributions made to your 403(b) account were nonelective contributions, you will need to figure only the MEA and the limit on annual additions. Your MAC is the lesser of these two limits.

Elective deferrals and nonelective contributions. If the contributions made to your 403(b) account were a combination of both elective deferrals and nonelective contributions, you will need to figure all three of the limits listed above. Your MAC is the lesser of your MEA or your limit on annual additions.

However, you need to figure the limit on elective deferrals to determine whether the amount contributed to your 403(b) account is more than that limit. For information on the limit on elective deferrals, see chapter 5.

Alternative limits. If you were an employee of certain tax-exempt organizations, you may be eligible to figure your MAC for 2001 using the following limits.

• An alternative limit (explained in Chapter 6, Alternative Limits for Annual Additions).
• An increased limit on elective deferrals (explained in Chapter 5, Limit on Elective Deferrals).

You may be able to use the limits listed above if you were an eligible employee (described in chapter 1) of one of the following organizations.

• An educational organization.
• A hospital.
• A home health service agency.
• A health and welfare service agency.
• A church, convention, or association of churches.

Church employees. In addition to the alternative limits and the increased limit on elective deferrals, certain church employees may be able to figure the components of MAC using different methods. See Chapter 7, Ministers and Church Employees.

Worksheets. Worksheets are available in chapter 13 to help you figure your MAC.

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