YOU ASK:

What are the 403b contribution limits for 2006, 2007, 2008, and 2009?

WE ANSWER:

403b is an employer sponsored retirement plan that you may choose to participate in, if it is offered by your employer. Since the only difference between 401k and 403b is in the investment options, the 403b contribution limits are the same as those that apply to 401k.

The 403b plan includes a CODA arrangement which offers participants the choice of deciding whether to receive their wages cash, or set part of them aside to invest into the retirement plan on a elective-deferred basis.

403b Elective-Deferral Contribution Limits

All 403b elective deferral contributions are subject to certain restrictions, as shown in Table 1. In 2009, 403b participants aged 49 and below can contribute a maximum of $16,500 into their retirement plan, whereas 403b holders aged 50 and above can invest an additional $5,500.

Year Participants aged 49 and below Participants aged 50 and above
2006 $15,000 $20,000
2007 $15,500 $20,500
2008 $15,500 $20,500
2009 $16,500 $22,000

Table 1. 403b elective-deferral contribution limits (2006-2009).

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