403(b)max

[Guest marytrobot]

I am currently employed by a quasi-state non-profit organization. My previous employment was 13 years in an educational collaborative (consortium of school districts) in which I contributed to a 403(B) TSA but not to the max. I am having a difficult time understanding max contributions and need to be able to explain to our employees . This organization was deemed exempt from FUTA as a state agency. The state ruled that although credted by statute and funded in part by Appropriations it is not a state agency and not eligible to be part of the State retirement system. Since 1993, the organization has contributed 7.5% of an emloyee's salary to a qualified 403(B) plan in lieu of Social security. The plan is chosen and set up by the employee. The employee can also contribute to the plan through salary reduction.

Here are my questions:

Is the 7.5% an employer "match"?

What is the limit on employee contributions for 2003?

Does the 25% of salary rule come in to play( total of employer & employee contributions cannot exceed 25% of salary)?

Is this an ERISA Plan and what does that mean?

My auditors said we don't have to file a 5500 this year true?:confused:

[Guest Yanikoski]

The 2003 contribution limits (set by EGTRRA and just re-affirmed in the past week by an IRS announcement) are $12,000 for the basic elective deferral limit, plus $2,000 for the age-50+ catchup. The $40,000 limit on total contributions remains intact, as does the total limit of 100% of compensation. The 25% rule is no longer in effect -- it was replaced by the 100% limit. The $3,000 catchup for certain employees with 15 years of service is not subject to inflation adjustments, and remains the same in 2003.

I am not an expert in ERISA rules, so I will leave that to someone else.