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In 2007 the IRS adjusted the limits that an individual can contribute to their 403(b) from $15,000 to $15,500 as indexed to inflation. In some cases, there are situations where an individual can contribute more than $15,500 in 2007. Please see the table below.
| Year |
Maximum Annual Contribution |
| 2006 |
$15,000 |
| 2007 |
$15,500 |
| 2008 and After |
Indexed for inflation, in $500 Increments |
Catch-up Contributions
A 50-year-old or older person is entitled to contribute up to $20,500 in 2007 – the $15,500 annual contribution limit plus an additional $5,000 catch-up contribution. Please note that your actual contribution limits may be less than indicated above. Your contributions cannot exceed your annual salary.
| Age 50+ |
|
| Maximum Annual Contribution |
$15,500 |
| Catch-Up Contribution |
$5,000 |
| Total Annual Contribution |
$20,500 |
Lifetime Catch-up (15 Year Rule)
Available only to employees with 15 or more years of service with a qualified organization, this provision may allow you to increase your salary deferral contributions above your basic salary deferral limit by up to $3,000 per year, up to a lifetime catch-up limit of $15,000. To qualify, you must be a long-term employee who has contributed on average less than $5,000 a year to your 403(b) plan.
| Age 50+ |
|
| Maximum Annual Contribution |
$15,500 |
| Catch-Up Contribution |
$5,000 |
| Lifetime Catch-Up |
$3,000 |
| Total Annual Contribution |
$23,500 |
As always, to ensure that you are taking full advantage of every option available to you, be sure to contact ValuTeachers for a full retirement program assessment. (Link to Contact Us)
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Contribution Limits 
