Publication 571: Tax-Sheltered Annuity Plans (403(b) Plans); Publication 571 Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

Important Changes for 2003

Limit on elective deferrals. For 2003, the limit on elective deferrals has been increased from $11,000 to $12,000. See chapter 4.

Catch-up contributions for persons age 50 or over. If you will be age 50 or over by the end of 2003, you may be permitted to make additional catch-up contributions of up to $2,000 to your 403(b) plan. See chapter 6.

Important Changes for 2004

Limit on elective deferrals. For 2004, the limit on elective deferrals has been increased from $12,000 to $13,000. See chapter 4.

Catch-up contributions for persons age 50 or over. If you will be age 50 or over by the end of 2004, you may be permitted to make additional catch-up contributions of up to $3,000 to your 403(b) plan for 2004. See chapter 6.

Limit on annual additions. For 2004, the limit on annual additions has been increased from $40,000 to $41,000. See chapter 3.

Important Reminder

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1–800–THE-LOST (1–800–843–5678) if you recognize a child.

Introduction

This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan.

Determine the maximum amount that can be contributed to your 403(b) account in 2004,
Determine the maximum amount that could have been contributed to your 403(b) account in 2003,
Identify excess contributions,
Understand the basic rules for claiming the retirement savings contributions credit.
Understand the basic rules for distributions and rollovers from 403(b) accounts.

How to use this publication.

This publication is organized into chapters to help you find information easily.

Chapter 1 answers questions frequently asked by 403(b) plan participants.

Chapters 2 through 6 explain the rules and terms you need to know to figure the maximum amount that could have been contributed to your 403(b) account for 2003 and the maximum amount that can be contributed to your 403(b) account in 2004.

Chapter 7 provides general information on the prevention and correction of excess contributions to your 403(b) account.

Chapter 8 provides general information on distributions, and transfers and rollovers.

Chapter 9 provides blank worksheets that you will need to accurately and actively participate in your 403(b) plan. Filled-in samples of most of these worksheets can be found throughout this publication.

Chapter 10 explains the rules for claiming the retirement savings contributions credit.

Comments and suggestions.

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Internal Revenue Service
TE/GE and Specialty Forms and Publications Branch
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Washington, DC 20224

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Publication 571Introductory Material

Important Changes for 2003

Important Changes for 2004

Important Reminder

Introduction

Useful Items - You may want to see:

Publication 571
Introductory Material