15 Year Catch-up for a private school

[cprisco]

Can a private school allow the 15 year catch-up provision in a 403(b) document? I have seen information that says only public schools can use the 15 year catch up, but other sources say both private and public schools can allow this provision. Does anyone know for sure?

Thanks.

[Carol V. Calhoun]

Any public or private school would qualify. IRC section 402(g)(7)(A) limits the 15-year catch-up to "qualified employee of a qualified organization." IRC section 402(g)(7)(B) defines "qualified organization" as follows:

For purposes of this paragraph, the term “qualified organization” means any educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches. Such term includes any organization described in section 414(e)(3)(B)(ii). Terms used in this subparagraph shall have the same meaning as when used in section 415©(4) (as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001).

So an "educational organization," public or private, would qualify.

[cprisco]

Thanks, Carol!

[mbozek]

According to IRS Pub 571 chapter 4, the 15 year catch up is available to employees of an education organization such as a public or private school which is a separate eligible category from churches. There is no requirement in Pub 571 for the private school to be affiliated with a church in order to be eligible for the catch up.

[Belgarath]

Carol - if you take a look at 1.403(b)-4©(3)(ii)(A)(1), it refers to a qualified organization as (1) an educational organization described in Section 170(b)(1)(A)(ii)...

170(b)(1)(A)(ii) does not limit it to public schools.

So at least IMHO, a private school should generally qualify.