403(b) MEA calculation for teacher who changes school systems between

[Guest Liu Wei]

A new teacher two years ago, I was not made aware of the availability of 403(B) plans. Therefore, although eligible, to date no deferrals for 403(B) have been made. Over the summer, I changed school systems (from one county to a neighboring county in Virginia). I am now at the point of asking a vendor to calculate the MEA. Are these calculations made on a calendar-year basis? If so, may I ask (is there a basis) to have the income earned in my previous public school earlier this calendar year included in the calculation?

[Michael Devault]

The exclusion allowance calculation is made over a "limitation year," which is generally the calendar year.

If you have two eligible employers in the same limitation year, you must make separate exclusion allowance calculations for each employer. You cannot combine salaries, etc. into one calculation. So, you can only use the salary with your current employer.

The only coordination of calculations is with the elective deferral limit. You can only defer a maximum of $10,500 per year, regardless of the number of employers.

Hope this is of help.