Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) Page 11
Download a blank fillable Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
215.
6.
Changes to Includible
Compensation for Most
Ministers and
Catch-Up
Recent Year of Service
Church
Contributions
There are two types of changes in determining
includible compensation for the most recent
Employees
year of service. They are:
The most that can be contributed to your 403(b)
account is the lesser of your limit on annual
•
Changes in how the includible compensa-
additions or your limit on elective deferrals.
tion of foreign missionaries and
If you will be age 50 or older by the end of the
Self-employed ministers and church employees
self-employed ministers is figured, and
year, you may also be able to make additional
who participate in 403(b) plans generally follow
•
A change to the years that are counted
catch-up contributions. These additional contri-
the same rules as other 403(b) plan participants.
when figuring the most recent year of
butions cannot be made with after-tax employee
This means that if you are a self-employed
service for church employees and
contributions.
minister or a church employee, your MAC gen-
self-employed ministers.
You are eligible to make catch-up contribu-
erally is the lesser of:
tions if:
•
Your limit on annual additions, or
Changes to Includible
•
You will have reached age 50 by the end
•
Your limit on elective deferrals.
Compensation
of the year, and
•
The maximum amount of elective deferrals
For most ministers and church employees,
Includible compensation is figured differently for
that can be made to your 403(b) account
the limit on annual additions is figured without
foreign missionaries and self-employed minis-
have been made for the plan year.
any changes. This means that if you are a minis-
ters.
ter or church employee, your limit on annual
The maximum amount of catch-up contribu-
additions generally is the lesser of:
tions is the lesser of:
Foreign missionary. If you are a foreign mis-
•
$49,000 for 2011 and $50,000 for 2012, or
•
sionary, your includible compensation includes
$5,500 for 2011 (unchanged for 2012), or
•
Your includible compensation for your
foreign earned income that may otherwise be
•
The excess of your compensation for the
most recent year of service.
excludable from your gross income under sec-
year, over the elective deferrals that are
tion 911.
not catch-up contributions.
Although, in general, the same limit applies,
If you are a foreign missionary, and your
church employees can choose an alternative
adjusted gross income is $17,000 or less, contri-
limit and there are changes in how church em-
Figuring catch-up contributions. When fig-
butions to your 403(b) account will not be treated
p l o y e e s ,
f o r e i g n
m i s s i o n a r i e s ,
a n d
uring allowable catch-up contributions, combine
as exceeding the limit on annual additions if the
self-employed ministers figure includible com-
all catch-up contributions made by your em-
contributions are not in excess of $3,000.
pensation for the most recent year of service.
ployer on your behalf to the following plans.
You are a foreign missionary if you are either
This chapter will explain the alternative limit and
•
a layperson or a duly ordained, commissioned,
Qualified retirement plans. (To determine
the changes.
or licensed minister of a church and you meet
if your plan is a qualified plan, ask your
Who is a church employee? A church em-
both of the following requirements.
plan administrator.)
ployee is anyone who is an employee of a
•
•
You are an employee of a church or con-
403(b) plans.
church or a convention or association of
vention or association of churches.
churches, including an employee of a
•
Simplified employee pension (SEP) plans.
tax-exempt organization controlled by or associ-
•
You are performing services for the church
•
SIMPLE plans.
ated with a church or a convention or associa-
outside the United States.
tion of churches.
The total amount of the catch-up contributions
Self-employed minister. If you are a
on your behalf to all plans maintained by your
self-employed minister, you are treated as an
employer cannot be more than the annual limit.
Alternative Limit for
employee of a tax-exempt organization that is a
For 2011 the limit is $5,500 (unchanged for
qualified employer. Your includible compensa-
2012).
Church Employees
tion is your net earnings from your ministry mi-
If you are eligible for both the 15-year
nus the contributions made to the retirement
!
rule increase in elective deferrals and
plan on your behalf and the deduction for
If you are a church employee, you can choose to
the age 50 catch-up, allocate amounts
CAUTION
one-half of the self-employment tax.
use $10,000 a year as your limit on annual
first under the 15-year rule and next as an age
additions, even if your annual additions com-
50 catch-up.
Changes to Years of Service
puted under the general rule is less.
Total contributions over your lifetime under
Catch-up contributions do not affect
Generally, only service with the employer who
this choice cannot be more than $40,000.
your MAC. Therefore, the maximum
TIP
maintains your 403(b) account can be counted
amount that you are allowed to have
when figuring your limit on annual additions.
contributed to your 403(b) account is your MAC
plus your allowable catch-up contribution.
Church employees. If you are a church em-
You can use
Worksheet C
in chapter 9 to
ployee, treat all of your years of service as an
figure your limit on catch-up contributions.
employee of a church or a convention or associ-
ation of churches as years of service with one
employer.
Self-employed minister. If you are a
self-employed minister, your years of service
include full and part years during which you were
self-employed.
Chapter 6 Catch-Up Contributions
Page 11
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial