If you have not elected to use an alternative limit in a prior year, you can use the year of separation from service limit for the limitation year that ends with or within the year you stopped working for the employer who maintained your 403(b) account. If you elect this limit, you use a different method to figure your MEA and your limit on annual additions.

Changes to the MEA. If you elect the year of separation from service limit, you figure your MEA taking into account only your last 10 years of service with the employer who maintained your 403(b) account and only amounts excludable during your last 10 years of service with that employer.

If you do not have 10 years with your employer, your years of service is the actual amount of years you do have with your employer. Your amount previously excludable is the total contributions excluded in previous years plus any excess contributions for those years that were more than your limit on annual additions.

Changes to the limit on annual additions. Under the year of separation from service limit, your limit on annual additions is the lesser of:

• 35,000, or
• Your MEA.

Figuring MAC using the year of separation from service limit. If you have elected the year of separation from service limit, use Worksheet 2 to figure your MAC.

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