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Stillwater007

Please explain 15 year Service rule for 403b

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Can someone please explain how the 15yr service catch up works and if I might qualify?

I have worked for my School District for 21 years, but have only had a 403b Roth account open for about 7 months. I also turn 50 this year and will be eligible to retire and will at age 55. I read somewhere you can start 5 years from retirement age. Is that age 62 (or is it 65) or is it when I am eligible to retire from my job? If so, would I receive the  extra $6500 option for turning 50 as well as 3k each year for the next 5 years?

 

Thank you

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Have you checked your employer’s 403b written plan and confirmed that the 15 year catchup is allowed? Because of its possible complexity, many districts do not include it. If it IS allowed, have you read IRS Pub 57l on it?   https://www.irs.gov/publications/p571#en_US_202101_publink1000239722 

I don’t think your age at retirement is considered in the 15 year catch up, only that you have had 15 years of full time employment with the same district. Notice that at the bottom of the above link, there is a link to: "Worksheet 1. Maximum Amount Contributable (MAC)" that is used to determine the amount of the 15 year catch up you may be eligible for.

You can qualify for both the age 50 6.5k catch up and the 3k 15 year catch up. The latter is used before the former.

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