403(b) Retirement Plan Annual Contribution Limits

(Authorized by the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of 2001)

The following chart summarizes the changes in tax law that impact the University 403(b) plan.

403(b) Plan Dollar and Percentage Limits

Rule

2006

2007

2008

2009

2010

Limit on employee contributions

$15,000

$15,500

$15,500

* $16,500

* $16,500

"Catch-Up" contributions for participants 50 or over

$5,000
additional

$5,000
additional

$5,000
additional

* $5,500
additional

* $5,500
additional

Compensation limit for plan contributions for UD employees joining the plan after 7/1/1996

$220,000

$225,000

$230,000

* $245,000

* $245,000

Limit on employer  plus   employee contributions

$44,000

$45,000

$46,000

* $49,000

* $49,000

Note: * = Limits subject to annual review by the IRS.

The 15-Year Rule catch-up provision applies only to the 403(b) Retirement Plan. Based on contribution history beginning in 1987, the 15-year rule may allow any employee to exceed the annual limit if they have at least 15 years of service. Additional contributions made under the 15-year rule cannot exceed $3,000 per year, up to a $15,000 lifetime cap.

457(b) Plan - Employees who are maximizing their contributions to the 403(b) Retirement plan may also voluntarily participate in the 457(b) Plan. With limits similar to those listed above (less the 15-year rule), this plan provides an additional opportunity to save on a pre-tax basis toward retirement. For further information please refer to the University Voluntary 457(b) Retirement Program.


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