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 |
$5,000 |
$5,000 |
* $5,500 |
* $5,500 |
|
Compensation
limit for plan contributions for UD employees joining the plan after
|
$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.