Publication 571 - Tax-Sheltered Annuity Plans (403(B) Plans) For Employees Of Public Schools And Certain Tax-Exempt Organizations Page 26
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37Available Worksheets
amount contributed during the year to determine
if contributions are more than your MAC.
The following worksheets have been provided to
13.
help you figure components of your MAC.
When Should I Figure MAC?
•
Worksheet A. Maximum Exclusion Allow-
At the beginning of each year, you should figure
ance (MEA).
Worksheets
your MAC using a conservative estimate of your
•
Worksheet B. Cost of Life Insurance.
compensation. Should your income change dur-
•
ing the year, you should refigure your MAC
Worksheet C. Includible Compensation for
Chapter 3 introduced you to the term maximum
based on a revised conservative estimate. By
Your Most Recent Year of Service.
amount contributable (MAC). Generally, your
doing this, you will be able to determine if contri-
•
MAC for 2001 is the least of your:
Worksheet D. Limit on Annual Additions
butions to your 403(b) account should be in-
•
for 2001.
creased or decreased for the year.
Maximum exclusion allowance (chapter 3),
•
•
Worksheet E. Compensation Calculation
Limit on annual additions (chapter 4 for
— Limit on Annual Additions.
the general rule or chapter 6 for alternative
Figuring MAC for the Current Year
•
limits), or
Worksheet F. Limit on Elective Deferrals.
•
If you are figuring your MAC for the current year,
•
Limit on elective deferrals (chapter 5).
Worksheet G. Limit on Annual Additions
you should use a conservative estimate of your
for 2002.
compensation.
Worksheets 1 through 4 in this chapter pull all
•
If you can figure your MAC for 2001 using
Worksheet H. Catch-Up Contributions.
three of these components together to help you
one of the three alternative limits, you should
figure your MAC for 2001.
figure your MAC using both the selected alterna-
Worksheets 1 through 5, and 7 will help you
For 2002, MAC is generally the lesser of your
tive limit and the general limit.
figure MAC. Worksheet 6 will help your deter-
limit on annual additions or your limit on elective
mine if you have excess contributions.
deferrals. Chapter 9 has information on figuring
Before selecting an alternative limit,
•
!
your MAC for 2002. Worksheet 7 in this chapter
read Chapter 6, Alternative Limits on
Worksheet 1. Maximum Amount Contribut-
can help you figure your MAC for 2002.
Annual Additions.
able (No Alternatives) for 2001.
CAUTION
•
Worksheet 2. Year of Separation From
Service Limit.
Figuring MAC
Checking the Previous Year’s
•
Worksheet 3. Overall Limit.
Contributions
•
Worksheet 4. Any Year Limit.
After completing the worksheets, you
At the beginning of the following year, you
•
Worksheet 5. Limit on Nonelective Contri-
should maintain them with your 403(b)
should refigure your MAC based on your actual
butions.
records for that year. Do not attach
earned income.
•
them to your tax return. At the end of the year or
Worksheet 6. Calculation of Excess 403(b)
At the end of the current year or the begin-
the beginning of the next year, you should com-
Contributions for 2001.
ning of the next year, you should check your
pare your estimated compensation figures with
contributions to be sure you did not exceed your
•
Worksheet 7. Maximum Amount Contribut-
your actual figures.
MAC. This means refiguring your limit based on
able (MAC) for 2002.
your actual compensation figures for the year.
If your compensation is the same as, or more
.
This will allow you to determine if the amount
than, the projected amounts and the calcula-
contributed is more than the allowable amounts,
tions are correct, then you should simply file
and possibly avoid additional taxes.
these worksheets with your other tax records for
the year.
If your compensation was lower than your
estimated figures, you will need to check the
Page 26
Chapter 13 Worksheets
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