Maximum 403B Contribution

[Guest DebH]

Still having difficulty figuring maximum contribution.

Been with the same district 19 years.

9% of salary is tax deferred and sent to state teachers retirement system on my behalf.

when figuring employer contribution does that 9% get included on line 6? Is that an employer contribution for purpose of figuring the 25%

On a 50,000 salary:

50,000 minus 4,500 (9%)=includable compensation

x 20%=9100.00 plus 3,000 (over 15 years same dist).

Does this look right?

[Guest]

this would probably be better posted on the 403(B) board, but I will give a shot.

you did not indicate how much was previously contributed.

includable comp now includes deferrals

1. Exclusion Allowance=

20% * (50000) * 19(svc) - prior contributions=

190000 - prior contributions

2. Limit on overall contribution

50000 * 25% = 12500

3. increase in deferral for long service

19 * 5000 = 95000

95000 - prior deferrals = X

or

15000 - any extra increases previously made = Y

use the smaller of X or Y but cap at 3000. This is the amount your deferrals could be increased.