| Publication 571 |
2001 Tax Year |
Chapter 3
Maximum Exclusion Allowance (MEA)
The maximum exclusion allowance (MEA) has been repealed for years beginning after 2001. When figuring your MAC for 2002 and later years, you will
not use MEA.
The maximum exclusion allowance (MEA) is the first component of MAC for 2001. Your MEA is the limit on the amount of contributions your employer
could make to your 403(b) account for 2001.
You need to figure your MEA separately for each employer who has established a 403(b) account for your benefit. When figuring your MEA, do not mix
the information of one employer with the information of another employer.
More than one account, same employer. If during 2001, you have two or more 403(b) accounts maintained by the same employer, figure only
one MEA for all 403(b) accounts maintained by that employer because they are considered one account.
More than one employer. If more than one employer contributed to a 403(b) account for you, you must figure a separate MEA for each
employer.
MEA formula.
To figure your MEA you will need to understand the following concepts.
- Years of service.
- Includible compensation for your most recent year of service.
- Amounts previously excludable.
Your MEA is 20% of your includible compensation for your most recent year of service multiplied by your years of service, and
then reduced by amounts previously excludable.
You can use Worksheet A, Maximum Exclusion Allowance (MEA), in chapter 13, to figure your MEA.
Church employees.
If you are a church employee, you may be able to use different rules when figuring your MEA. For more information, see chapter 7.
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