Chapter 10
Catch-Up Contributions

The most that can be contributed to your 403(b) account after 2001 is the lesser of your limit on annual additions or your limit on elective deferrals.

If you are age 50 or older before the end of the plan year, you may also be able to make additional catch-up contributions. These additional contributions cannot be made with after-tax employee contributions.

You are eligible to make catch-up contributions if:

• You have reached age 50 before the close of the plan year (see your plan administrator to determine the close of your plan year), and
• The maximum amount of elective deferrals that can be made to your 403(b) account have been made for the plan year.

The maximum amount of catch-up contributions for 2002, is the lesser of

• $1,000, or
• Your includible compensation minus your actual deferrals for the year.

Catch-up contributions do not affect your MAC. Therefore, the maximum amount that you are allowed to have contributed to your 403(b) account is your MAC plus your allowable catch-up contribution.

You can use Worksheet H in chapter 13 to figure your catch-up contributions.

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