Employer Eligibility:
Limited to:
Contribution (Benefit) Limits:
Under Age 50:
$14,000 in 2005
$15,000 in 2006
$15,500 in 2007
$15,500 in 2008
Catch-up: Age 50 and Up
$4,000 in 2005
$5,000 in 2006
$5,000 in 2007
$5,000 in 2008
Above limits cannot exceed 100% of compensation. Starting in 2006, participants can elect to make Roth deferrals contributions. Employees with the same employer for more than 15 years may be able to make additional contributions.
Maximum Employee Eligibility Requirements:
Non-ERISA 403(b) — generally, all employees are eligible to defer. Employer contributions can be given in a discriminatory manner for some organizations, but not all organizations can make an employer contribution to a non-ERISA 403(b). No discrimination testing applies.
ERISA 403(b) — for employee contributions, all who are regularly scheduled to work at least 20 hours per week.
For 501(c)(3) organizations only: Employer contributions can require 1,000 hours per year and age 21. Discrimination testing will apply.
Set-up Deadline:
Organization’s year end.
Contribution Deadline:
Non-ERISA 403(b):
Salary deferrals: state law will define the restrictions, if any, for non-ERISA plans.
Employer contributions:business’s tax filing deadline, including extensions.
ERISA 403(b):
Salary deferrals: must be deposited no later than the day of the month following deferral
Employer contributions: on or before September 15 of the following year.