4048 / What is the special increase to the limit on amounts contributed to a tax sheltered annuity plan under a salary reduction agreement for employees who have completed 15 years of service?

A special increased limit is provided for amounts contributed to 403(b) plans under a salary reduction agreement in the case of an employee who has completed 15 years of service with an educational institution, hospital, health and welfare service agency (including a home health service agency or an adoption agency), a church (or a convention or association of churches), or church-related organization.¹

The limit for any one year is increased by the lesser of the following:

(1)  $3,000;

(2)  $15,000, reduced by the sum of amounts already excluded for prior taxable years by reason of this special exception and the aggregate amount of designated Roth contributions for prior taxable years; or