Salary Deferral Limits

[MARYMM]

I am a Payroll Coordinator who is trying to set up salary deferral limits crorrectly in the in-house payroll program.

My new employer (a hospital) has several plans. Two Tax Sheltered Annuities have been offered for many years to which no employer contributions are made (non ERISA 403(b)). A 401(k) Plan was established last year to which employer match and disretionary contributions are made.

My question is - what is the maximum salary deferral amount for an employee (under age 50) for 2006 ? Is it a total of $15,000 to all 3 Plans ? Or is it $15,000 to the TSA's and $15,000 to the 401 (k) for a total of $30,000 ?

I've seen what looks to me like conflicting answers to similar questions on this board. I'm thinking that whether or not the 403(b) is an ERISA plan may make a difference.

Thanks in advance

[saabraa]

The section 402(g) limit is $15,000 for all 3 plans.

If there had been a 457(b) plan in the mix, then a second $15,000 would be a possibility

[Guest mjb]

For employees with 15 yrs of service, an additional 3k can be contributed to a 403b plan for 5 yrs making the max contribution 18k in 06. See IRS pub 571 available at www.irs.gov for futher information. An employee could contribute 15k to a 401k plan and 3k to a 403b annuity. For HCEs the better option is to contribute to the 403b plan because there is no ADP % limit, e.g., all employees can contribute 15/18/23k maximum $ permitted for salary reduction under 402g. There is an additional 15k contribution for participants in a 457b plan making the max salary deferrral 38k (23k in 401k/403b plus 15k in 457b).

[MARYMM]

For employees with 15 yrs of service, an additional 3k can be contributed to a 403b plan for 5 yrs making the max contribution 18k in 06. See IRS pub 571 available at www.irs.gov for futher information. An employee could contribute 15k to a 401k plan and 3k to a 403b annuity. For HCEs the better option is to contribute to the 403b plan because there is no ADP % limit, e.g., all employees can contribute 15/18/23k maximum $ permitted for salary reduction under 402g. There is an additional 15k contribution for participants in a 457b plan making the max salary deferrral 38k (23k in 401k/403b plus 15k in 457b).

Thanks, this is very helpful