403(b) TSA Overview

403(b) Tax Shelter Annuity Plans are available to employees of public school districts and community colleges as well as some non-profit church and hospital organizations. 403(b) Plans allow for tax-deferral of salary and tax-deferred growth of assets.

Employee Contribution $$$

Tax Year	Annual Contribution Limit	Age 50 Catch-up Limit
2004	$13,000	$3,000
2005	$14,000	$4,000
2006	$15,000	$5,000
2007	$15,500	$5,000
2008	$15,500	$5,000
2009	$16,500	$5,500

Employees who have fifteen (15) or more full-time years of service with the same employer may be eligible to take advantage of a special catch-up provision. If eligible, you may make up to an additional $3,000 contribution per year, for a lifetime maximum catch-up of $15,000. The 15 year catch-up contribution does not interfere with your ability to utilize the age 50 catch-up contribution. Eligibility for the 15 year catch-up provision is subject to a calculation that must be performed prior to making this contribution and must be updated annually.

Starting in 2002, any contribution you make to a 403(b) Plan does not offset your contribution limits to a 457(b) Deferred Compensation Plan. However, you must still coordinate your voluntary employee contributions to a 403(b) Plan with other plans such as a 401(k) or SEP IRA.