Financial Guidance for Ministers

403(b) Contribution Limits


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.

2018 403(b) contribution limits:

Under age 50:

The limit for contributions (employee and employer) is $55,000.

The employee deferral portion is limited to $18,500.

Age 50 and over:

The limit for contributions (employee and employer) is $61,000.

The employee deferral portion is limited to $24,500.

*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
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