402(g) limits

[tuni88]

Can someone very briefly summarize what are the '402(g) limits' in a 403b plan?

[Tom Poje]

I can't, but then, others already have, so why bother.

[mbozek]

Can someone very briefly summarize what are the '402(g) limits' in a 403b plan?

Briefly the limits are stacked in three tiers:

1. 16,500 elective contribution

2. 3,000 elective contribution for eligible employees of certain 403b plan sponsors (5 years max)

3. 5,500 catch up for employees 50 and over.

max 25,000.

If eligible for #2, first 3k of contribution by employee 50 or over in excess of 16,500 must be counted toward amount in 2. Excess amounts are counted toward #3.

See IRS pub 571 P 9-10 for detailed illustration of how to calculate maximum employee contribution.

Also 403b contributions must be aggregated with elective contributions to all 401k plans, but not contributions to a 457 plan.

[tuni88]

Can someone very briefly summarize what are the '402(g) limits' in a 403b plan?

Briefly the limits are stacked in three tiers:

1. 16,500 elective contribution

2. 3,000 elective contribution for eligible employees of certain 403b plan sponsors (5 years max)

3. 5,500 catch up for employees 50 and over.

max 25,000.

If eligible for #2, first 3k of contribution by employee 50 or over in excess of 16,500 must be counted toward amount in 2. Excess amounts are counted toward #3.

See IRS pub 571 P 9-10 for detailed illustration of how to calculate maximum employee contribution.

Also 403b contributions must be aggregated with elective contributions to all 401k plans, but not contributions to a 457 plan.

Thanks. A follow-up question:

Say an under-age-50 person works for two separate unrelated employers, each of which sponsors a 403b plan. Can she contribute $16,500 to each plan (a total of $33,000) or must she be careful to coordinate her contributions so that they don't exceed $16,500 combined?

[masteff]

I don't know much about 403(b)'s but I do know that 402(g) is a taxpayer limit (so have to add plans that the taxpayer is in together, can't count each one seperately) (note that mbozek notes that 403(b)s have to be aggregated w/ 401(k)s, which is a futher extension of it being by taxpayer and not by plan).