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Publication 571 2002 Tax Year

Tax-Sheltered Annuity Plans (403(b) Plans)
(Revised: 12/2002)

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This is archived information that pertains only to the 2002 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

6. Catch-Up Contributions

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

If you will be age 50 or older by the end of the 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 will have reached age 50 by the end of the 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 is the lesser of

  • $1,000 ($2,000 for 2003), or
  • Your includible compensation minus your other elective deferrals for the year.

TAXTIP: 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.

Figuring catch-up contributions.  When figuring allowable catch-up contributions, combine all catch-up contributions made by your employer on your behalf to the following plans.

  • Qualified retirement plans. (To determine if your plan is a qualified plan ask your plan administrator.)
  • 403(b) plans.
  • Simplified employee pension (SEP) plans.
  • SIMPLE plans.

The total amount of the catch-up contributions on your behalf to all plans maintained by your employer cannot be more than the annual limit. For 2002, the limit is $1,000 and for 2003 the limit is $2,000.

You can use Worksheet C in chapter 9 to figure your limit on catch-up contributions.

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