MSU Human Resources >> Benefits >> Retirement >> Contribution Limits for 403(b) Supplemental Retirement Program


Contribution Limits for 403(b) Supplemental Retirement Program

The Contribution Limits for 403(b) Plans for 2014 are defined as follows:

  • 100% of salary (Section 415 of the Internal Revenue Code) or
  • $17,500 (Section 402(g) of the Internal Revenue Code) or
  • $52,000 (Section 415 of the Internal Revenue Code) - this limit includes 403(b) Base Retirement Program (BRP) contributions made by both the employee and MSU

How To Determine Your 2014 Contribution Limit

  • Use the annual salary column below to determine which limit governs your contributions.
  • Determine the dollar amount you may defer.
Annual Salary Governing Limit Contribution Limit
$17,500 or less 415 100% of Salary
$17,501 up to $230,000 402(g) $17,500 * (Total must include all Voluntary plan contributions)
$230,000 or greater 415 $52,000 (Total must include all 403(b) Base Retirement contributions and all 403(b) Supplemental contributions)

*For employees that are enrolled in the 403(b) Base Retirement Program on a Voluntary Basis, your 5% employee contribution must be subtracted from the total contribution limit.

To determine if participation in the 403(b) BRP is on a voluntary basis, you may refer to the Base Plan Eligibility Chart or your MSU check advice (pay stub.)

On your check advice, if the retirement contribution is coded as "VOL BSE RET" the participation is voluntary (generally an employee is under the age of 35 and/or has less than 24 Full Time Equivalent (FTE) service months.)

On your check advice, if the retirement contribution is coded as "MN BSE RET" the participation is mandatory. The 5% BRP amount would not need to be subtracted from the deferral limit.

Scheduled 402(g) Increases

Year Annual 402(g) Contribution Limit
2014 $17,500
2013 $17,500

Cost of living adjustments (COLAs) may allow for additional increases to these limits in increments of $500 per year.

Additional Catch-up Contributions

  • Age 50 Catch-up - any employee who obtains or is over the age of 50 in 2014 is eligible for an additional $5,500 "catch-up" contribution.
  • This Catch-up provision is not applicable to the 402(g) or 415 contribution limits as explained above. 

Scheduled Catch-up Increases

Year Annual 402(g) Contribution Limit Additional
Catch-up Limit
Total Contribution Limit
2014 $17,500 $5,500 $23,000
2013 $17,500 $5,500 $23,000

Cost of living adjustments (COLAs) may allow for additional increases to these limits in increments of $500 per year.

403(b) Supplemental Retirement Program (SRP) Sample Calculations

EXAMPLE #1:
Juanita is a 30 year old newly hired Associate Professor with an annual salary of $60,000. How much may she contribute to the 403(b) Supplemental Program in 2014?

Annual Salary = $60,000
5% Voluntary BRP Contributions = $3,000
Limit = $17,500
Minus 5% Voluntary BRP Contributions = -$3,000
Available Amount for 403(b) SRP = $14,500

Please Note: Employees hired after the first of the year, will need to prorate their voluntary contributions.

EXAMPLE #2:
Roger is a 52 year old CTU member, who has been with MSU for 20 years and has an annual salary of $45,000. How much may he contribute to his 403(b) Supplemental Program in 2014?

Annual Salary = $45,000
Limit = $17,500
Age 50 Catch-up = $5,500
Available Amount for 403(b) SRP = $23,000

NOTE: Employees hired on or after 1/1/96 are subject to Section 401(a)(17) of the Internal Revenue Code.  This limit prohibits employers from making retirement plan contributions on the amount of annual salary in excess of $260,000 for 2014.  If you are in this category, you may see your 403(b) contributions reduced and/or stopped within a calendar year.  This limit may be indexed for inflation in $5,000 increments, in future years.

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