Calculating employer contributions isn’t really complicated. View the short 90-second video for a simple explanation of how to calculate 403(b) employer contribution limits using two figures from your W-2.
Your contribution limits are also subject to IRS maximum contribution limits as noted below according to your age.
2019 403(b) contribution limits:
Under age 50:
The limit for contributions (employee and employer) is $56,000.
The employee deferral portion is limited to $19,000.
Age 50 and over:
The limit for contributions (employee and employer) is $62,000.
The employee deferral portion is limited to $25,000.
*Remember, there must be $1 of Includible Compensation for every $1 of Employer Contribution.
A few tips to remember about your Clergy Advantage 403(b) contributions:
- Employer Contributions are not reflected on your W-2
- Employer Contributions cannot exceed Includible Compensation, as explained in the video
- Employee Contributions are deferred from your pay package and reported in Box 12
- The Employee (pre-tax) Contribution is Code E
- A Roth Style (after-tax) contribution is Code BB
- There must be one dollar of Includible Compensation for every dollar of Employer Contribution
- Contribution limits change annually and are affected by your age
- Always check our website for current limits and talk to your advisor for optimal retirement planning