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LynnPete310

Method Of Contribution Question

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My husband holds a 403(b) with his employer, and believes that they are eligible to make contributions directly to the plan administrator. I believe that the ONLY way to contribute elective deferals is with a salary reduction agreement. He believes that he can write a check directly to the plan. That sounds too good to be true.

 

Please settle this for us.

 

Publication 571, Section 1, page 3 appears to support my belief, but if there is a way to contribute other than salary reduction via payroll deductions, we'd like to know.

 

Ever heard of such a thing as writing a check to the plan?

 

Thanks,

 

The Spousal Unit

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To the best of my knowledge, there are only three ways to get money into a 403(b) account:

 

1. Contributions made by the employer,

2. Salary reduction contributions made by the employee, and

3. Rollover from another retirement plan, such as another 403(b), IRA or 401(k).

 

An employee cannot make contributions to a 403(b) by writing a personal check to the plan.

 

Hope this helps. (And, I hope wagered dinner at a nice restaurant on the outcome!)

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