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What are the current contribution limits for 403(b) plans?

For , the employee basic contribution limit is $18,000 (or 100% of includible compensation, if less).

Plan sponsors also have the option of permitting “catch-up” contributions (i.e., it is not required that plan sponsors permit “catch-up” contributions). For plans that permit age 50+ and/or 15-years-of-service catch-up contributions, the age 50+ catch-up contribution limit is $6,000, and the 15-years-of-service catch-up limit is $3,000 (with a per-employer lifetime maximum of $15,000). If an employee is eligible for both the age 50+ and the 15-years-of-service catch-up in the same year, the 15-years-of-service catch-up contributions must be counted as though they are made first.

For 403(b) plans that include employer contributions, the combined limit for employee basic contributions, 15-year catch-up (if eligible), and employer contributions is $54,000 (or 100% of includible compensation if less). Note that for employees who are also eligible for the age 50+ catch-up, the combined limit is $60,000.

These contributions limits are offset by voluntary salary reduction contributions to other pre-tax retirement plans in which an employee participates—e.g., other 403(b) plans, 401(k) plans, SAR-SEPs, and SIMPLE IRAs. Additionally, contributions made by an employee to plans of all corporations, partnerships, and sole proprietorships in which the employee has more than 50% control may need to be aggregated for purposes of the $54,000 limit. (457(b) plans are excluded from the combined contribution limits).

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