403(b) Contribution Limits
Section 402(g)(7) provides for a special catch-up contribution called the 15 Years of Service Catch-up Contribution. However, it seems as if this doesn’t apply to all 501(c)(3) employers. Is it correct that this special catch-up is limited to only educational, hospital, home health care or church organizations? If so, is it true that the only catch-up opportunity would be the over 50 EGTRRA Catch-up from 414(v)? Thanks!
Permalink Submitted by Alan Spross on Thu, 2009-11-19 00:49
Yes, that is correct on both counts.
Some employees will be able to make both a MAX (15 year) contribution and the age 50 catch up contribution to their plans. The 414(v) catchup cannot be considered in calculating the 15 year catchup figure.
Permalink Submitted by Scott Cousino on Fri, 2009-11-20 16:03
Thanks Alan! Where can I find a list of the 501(c)(3) organizations that are approved for the 15 Years of Service Catch-up provision? Thanks again!
Permalink Submitted by Alan Spross on Fri, 2009-11-20 22:42
This is copied from 402(g)(7):
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(B) Qualified organization
For purposes of this paragraph, the term “qualified organization” means any educational organization, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches. Such term includes any organization described in section 414(e)(3)(B)(ii). Terms used in this subparagraph shall have the same meaning as when used in section 415(c)(4) (as in effect before the enactment of the Economic Growth and Tax Relief Reconciliation Act of 2001).
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