This worksheet is provided for illustrative purposes only and does not necessarily consider all possible exceptions or scenarios. PERSI recommends that members and employers seek independent advice from qualified tax professionals in applying limit tests. Reliance on this worksheet, its calculations and assumptions, is at the risk of the user.
* This deferral limit includes in available Catch-up. Part or all of this catch-up will not apply if your combined contributions to your 401(k), 457, and 403(b) is greater than
Gross annual compensation is not always used to calculate includible income under a 403(b) plan. If you did not work the entire calendar year, or if you worked part-time, you may be able to use a longer period to determine includible income. In such cases you will need to consult with a tax advisor to determine how to calculate the annual addition for the 403(b) plan.
This worksheet automatically considers catch-up contributions under section 414(v) for participants age 50 and over. It does not automatically consider catch-up contributions permitted under section 457(b)(3) for 457 participants in the 3 years before retirement, or catch-up contributions permitted under section 402(g)(8) for certain 403(b) participants. This calculator assumes no 457 employer contributions.
Generally, refunds due to the elective deferral limit are treated differently than refunds due to the annual additions limit. Elective Deferral Limit: If refund is made prior to April 15, excess deferrals are taxable in the year made and earnings on the excess deferrals are taxable in the year refunded. This means two 1099-R forms must be issued, one for the deferrals and one for the earning. It also requires the participant to file an amended tax return if he has already filed. Failure to make refunds by April 15 results in substantial penalties. Annual Additions Limit: Refund of contributions plus earning is taxable in the year made and a 1099-R is issued to the participant.
