Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) Page 9
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21•
Other Than Full-Time for the
Employer’s annual work period. Your em-
The numerator (top number) is the number
Full Year
ployer’s annual work period is the usual amount
of weeks, months, or semesters you were
of time an individual working full-time in a spe-
a full-time employee.
If, during any year, you were employed full-time
cific position is required to work. Generally, this
•
The denominator (bottom number) is the
for only part of your employer’s annual work
period of time is expressed in days, weeks,
number of weeks, months, or semesters
period, part-time for the entire annual work pe-
months, or semesters, and can span 2 calendar
considered the normal annual work period
riod, or part-time for only part of the work period,
years.
for the position.
your year of service for that year is a fraction of
Note. You cannot accumulate more than 1
your employer’s annual work period.
Figure the second fraction as though you had
year of service in a 12-month period.
Full-time for part of the year. If, during a
worked part-time for the entire annual work pe-
year, you were employed full-time for only part of
riod. The fraction is as follows:
Example. All full-time teachers at ABC Pub-
your employer’s annual work period, figure the
•
lic Schools are required to work both the Sep-
The numerator (top number) is the number
fraction for that year as follows:
tember through December semester and the
of hours or days you worked.
•
February through May semester. Therefore, the
The numerator (top number) is the number
•
The denominator (bottom number) is the
annual work period for full-time teachers em-
of weeks, months, or semesters you were
number of hours or days required of
ployed by ABC Public Schools is September
a full-time employee.
someone holding the same position who
through December and February through May.
•
The denominator (bottom number) is the
works full-time.
Teachers at ABC Public Schools who work both
number of weeks, months, or semesters
semesters in the same calendar year are con-
considered the normal annual work period
Once you have figured these two fractions,
sidered working a full year of service in that
for the position.
multiply them together to determine the fraction
calendar year.
representing your partial year of service for the
year.
Example. Jason was employed as a
Full-Time Employee for the Full
full-time instructor by a local college for the 4
Example. Maria, an attorney, teaches a
Year
months of the 2011 spring semester (February
course for one semester at a law school. She
2011 through May 2011). The annual work pe-
teaches 3 hours per week. The annual work
Count each full year during which you were
riod for the college is 8 months (February
period for teachers at the school is two semes-
employed full-time as 1 year of service. In deter-
through May and July through October). Given
ters. All full-time instructors at the school are
mining whether you were employed full-time,
these facts, Jason was employed full-time for
compare the amount of work you were required
required to teach 12 hours per week. Based on
part of the annual work period and provided
/
of
1
2
to perform with the amount of work normally
these facts, Maria is employed part-time for part
a year of service. Jason’s years of service com-
required of others who held the same position
of the annual work period. Her year of service for
putation for 2011 is as follows:
with the same employer and who generally re-
this year is determined by multiplying two frac-
ceived most of their pay from the position.
tions. Her computation is as follows:
Number of months Jason
worked
4
1
=
=
Maria’s first fraction
How to compare. You can use any method
Number of months in
8
2
that reasonably and accurately reflects the
annual work period
Number of semesters Maria
amount of work required. For example, if you are
worked
1
a teacher, you can use the number of hours of
=
Part-time for the full year. If, during a year,
classroom instruction as a measure of the
Number of semesters in annual
2
you were employed part-time for the employer’s
amount of work required.
work period
entire annual work period, you figure the fraction
In determining whether positions with the
for that year as follows:
Maria’s second fraction
same employer are the same, consider all of the
•
The numerator (top number) is the number
facts and circumstances concerning the posi-
Number of hours Maria
of hours or days you worked.
tions, including the work performed, the meth-
worked per week
3
1
ods by which pay is determined, and the
•
=
=
The denominator (bottom number) is the
Number of hours per
12
4
descriptions (or titles) of the positions.
number of hours or days required of
week considered full-time
someone holding the same position who
Example. An assistant professor employed
works full-time.
Maria would multiply these fractions to obtain
in the English department of a university will be
the fractional year of service:
considered a full-time employee if the amount of
Example. Vance teaches one course at a
work that he or she is required to perform is the
1
1
1
local medical school. He teaches 3 hours per
same as the amount of work normally required
x
=
week for two semesters. Other faculty members
of assistant professors of English at that univer-
2
4
8
at the same school teach 9 hours per week for
sity who get most of their pay from that position.
two semesters. The annual work period of the
If no one else works for your employer in the
medical school is two semesters. An instructor
same position, compare your work with the work
teaching 9 hours a week for two semesters is
normally required of others who held the same
Figuring the Limit on
considered a full-time employee. Given these
position with similar employers or similar posi-
facts, Vance has worked part-time for a full an-
tions with your employer.
Elective Deferrals
nual work period. Vance has completed
/
of a
1
3
year of service, figured as shown below.
Full year of service. A full year of service for a
You can use Part II of
Worksheet 1
in chapter 9
particular position means the usual annual work
Number of hours per
to figure the limit on elective deferrals.
period of anyone employed full-time in that gen-
week Vance worked
3
1
eral type of work at that place of employment.
=
=
Example
Number of hours per
9
3
Example. If a doctor works for a hospital 12
week considered full-time
Floyd has figured his limit on annual additions.
months of a year except for a 1-month vacation,
The only other component needed before he
Part-time for part of the year. If, during any
the doctor will be considered as employed for a
can determine his MAC for 2012 is his limit on
full year if the other doctors at that hospital also
year, you were employed part-time for only part
elective deferrals.
work 11 months of the year with a 1-month
of your employer’s annual work period, you fig-
vacation. Similarly, if the usual annual work pe-
ure your fraction for that year by multiplying two
riod at a university consists of the fall and spring
fractions.
Figuring Floyd’s limit on elective deferrals.
semesters, an instructor at that university who
Figure the first fraction as though you had
Floyd has been employed with his current em-
teaches these semesters will be considered as
worked full-time for part of the annual work pe-
ployer for less than 15 years. He is not eligible
working a full year.
riod. The fraction is as follows:
for the special 15-year increase. Therefore, his
Chapter 4 Limit on Elective Deferrals
Page 9
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