Lifetime Catch-Up question.

[Silver70]

Hi,

the 403(b) Lifetime catch-up definition states "To qualify...plan participant must also have contributed an average of less than $5,000.00 a year to the plan."

Does this mean an average over their time of employment?

Does this mean an average over the length of their contributions?

Ex: Dave Smith began his employment in 1990. He has 24 years of service, so he qualifies. He has contributed $9,000 the past 6 years for a total of $54,000. Would he qualify for the lifetime catch-up?

Thanks

-John

[Oregon TPA]

It's $5,000 multiplied by the number of years of service of the employee with the qualified organization. So it's not tied to contribution or participation period.