Generally, as a church employee, you can figure your limit on annual additions under either the general limit or (for years before 2002) one of the alternative limits.

You can also elect an increased amount for the limit on annual additions. Under this election, you can increase your limit on annual additions to $10,000 a year. Total contributions over your lifetime under this election cannot be more than $40,000. You cannot use this special election in the year you elect the year of separation from service limit.

Excess contributions. Generally, the same rules that apply to other participants regarding contribution limits also apply to you. If you are a church employee who figures your MAC using the minimum exclusion allowance and your contributions are more than your limit on annual additions, your excess contributions are the amount that is more than the minimum exclusion allowance. For more information on excess contributions, see chapter 11.

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