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403(b) Catch-ups for employees with 15-years of service

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Catch-ups for employees with 15-years of service

If permitted by the 403(b) plan, an employee who has at least 15 years of service with the same eligible 403(b) employer - a public school system, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), has a 403(b) elective deferral limit that is increased by the lesser of:

  1. $3,000,
  2. $15,000, reduced by the amount of additional elective deferrals made in prior years because of this rule, or
  3. $5,000 times the number of the employee’s years of service for the organization, minus the total elective deferrals made for earlier years.

An employee who qualifies for the 15-year rule can have an elective deferral limit as high as $22,500 for 2020 and 2021. For plans that offer “15-years of service catch-up” contributions, if an employee making these contributions doesn’t have the required 15 years of full-time service with the same employer, find out how to correct this mistake.

Source: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-403b-contribution-limits


I'm nearing 15 years of service and would like to confirm that, if I've contributed more than $75,000 ($5,000 * 15) over that time, my elective deferral limit is increased by $0(?) It would certainly be the "lesser of."

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