Who is Eligible to Use an Alternative Limit

If you were an eligible employee (as described in chapter 1) of one of the following organizations, you can use an alternative limit on annual additions.

• Public schools or public school systems.
• Hospitals.
• Home health service agencies.
• Health and welfare agencies.
• Churches or church-related organizations.

You can elect any one of the three alternative limits, but with certain restrictions. For example, you cannot make more than one election per employer and, once an election is made, it is irrevocable and another alternative limit cannot be selected in a subsequent year. However, you can still choose to apply the general rule in any year.

Additionally, certain employees of churches or church-related organizations might be eligible for other special elections that can be used to figure MAC. See chapter 7.

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