Publication 571 - Introductory Material
Rollovers by nonspouse beneficiaries. For distributions after December 31, 2006, a nonspouse beneficiary may make a direct rollover of a distribution from an eligible
retirement plan of
a deceased participant if the rollover is a direct transfer to an inherited IRA established to receive the distribution. The
transfer will be treated
as an eligible rollover distribution and the receiving individual retirement plan will be treated as an inherited retirement
account or annuity.
Rollover of after-tax contributions. For tax years beginning after December 31, 2006, participants in a 403(b) plan can roll over after-tax contributions to an
plan, and receive rollover after-tax contributions from an eligible retirement plan, if the rollover is made through a direct
Retired public safety officers. For tax years beginning after December 31, 2006, if you are an eligible retired public safety officer, distributions of up
to $3,000, made directly
from your 403(b) plan to pay accident, health, or long-term care insurance are not included in your taxable income. The premiums
can be for you, your
spouse, or your dependents.
A public safety officer is a law enforcement officer, fire fighter, chaplain, or member of a rescue squad or ambulance crew.
For additional information, see Publication 575, Pension and Annuity Income.
Retirement savings contribution credit. For 2007 the adjusted gross income limitations have been adjusted from $50,000 to $52,000 for married filing joint filers,
from $37,500 to $39,000
for head of household filers, and from $25,000 to $26,000 for single, married filing separately, or qualifying widow(er) with
dependent child filers.
See page 18, Retirement Savings Contribution Credit, for additional information.
Limit on elective deferrals. For 2007, the limit on elective deferrals has been increased from $15,000 to $15,500.
Limit on annual additions. For 2007, the limit on annual additions has been increased from $44,000 to $45,000.
90-24 Transfer. After September 24, 2007, you may no longer make a 90-24 transfer without your employer's involvement.
Rollovers to Roth IRA. Beginning January 1, 2008, distributions from tax-qualified retirement plans and tax-sheltered annuities can be converted
by making a direct
rollover into a Roth IRA subject to the restrictions that currently apply to rollovers from a traditional IRA into a Roth
Retirement savings contribution credit. For 2008 the adjusted gross income limitations have been changed to $53,000 for married filing joint filers, to $39,750 for
head of household
filers, and to $26,500 for single, married filing separately, or qualifying widow(er) with dependent child filers. See page
Savings Contribution Credit, for additional information.
Limit on elective deferrals. For 2008, the limit on elective deferrals remains unchanged at $15,500.
Limit on annual additions. For 2008, the limit on annual additions has been increased from $45,000 to $46,000.
Final income tax regulations pertaining to tax-sheltered annuities within the meaning of section 403(b) of the Internal Revenue
Code were published
on July 26, 2007. Generally, these regulations will be effective for taxable years beginning after December 31, 2008.
Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of
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
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This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan.
In this publication, you will find information to help you:
Determine the maximum amount that can be contributed to your 403(b) account in 2008.
Determine the maximum amount that could have been contributed to your 403(b) account in 2007.
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.
This publication does not provide specific information on the following topics.
Distributions from 403(b) accounts. This is covered in Publication 575.
Rollovers. This is covered in Publication 590, Individual Retirement Arrangements (IRAs).
Withdrawals, repayments, and loans from 403(b) annuity contracts for taxpayers who suffered economic losses as a result of
Katrina, Rita, or Wilma. This is covered in Publication 4492, Information for Taxpayers Affected by Hurricanes Katrina, Rita,
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 2007 and the maximum amount that can be contributed to your 403(b) account in 2008.
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.
We welcome your comments about this publication and your suggestions for future editions.
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Internal Revenue Service
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Ordering forms and publications.
to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response
within 10 business days after your request is received.
National Distribution Center
P.O. Box 8903
Bloomington, IL 61702-8903
If you have a tax question, visit
or call 1-800-829-1040. We cannot answer tax questions sent to
either of the addresses shown earlier.
Useful Items - You may want to see:
Social Security and Other Information for Members of the Clergy and Religious Workers
Pension and Annuity Income
Individual Retirement Arrangements (IRAs)
Form (and Instructions)
Wage and Tax Statement
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts
Return of Excise Taxes Related to Employee Benefit Plans
Qualified Hurricane Retirement Plan Distributions and Repayments