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Author: mdebar One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: 403(b) Contribution Limit s Date: 8/27/1998 2:23 PM
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Okay, so I found out that my employer (University of California) would let grad students (that's me)
contribute to a 403(b), and I got everything set up. When I asked them for my contribution limit,
they told me it was $4250 for this year (I'm assuming their calculation is based on my past year's salary).

This year, I'm on a fellowship, with a small additional salary. So the salary that I get from payroll is only about $8000. I set up 60% of the check to go in for the rest of the year (comes out to about $3500 by December, since I had no account until June)


My Questions:

1) Can I count my fellowship when calculating the limit. (The amount on the YTD salary doesn't
include it, but can I argue that since the fellowship check was signed by the same entity that it's part
of my salary?) (please, please say yes ;)

*** OK, Reality Check ***

2) Is my contribution limit affected? (I think it's 16% of this years salary, or $1280, but I may be way wrong)

3) If so, how can I calculate my (pre-tax) contribution limit?

4) Payroll says that when you hit your limit, they'll stop shunting money into the 403(b) from your
check. Can I sit back and wait for their limit ($4250 if they don't revise it) to be reached, or do I
have to watch it myself and stop contributing when I reach the limit?
(I'm assuming it's my responsibility too...)

Ack. Somebody please tell me I researched something wrong, or April isn't going to be a pretty
month.

Who knew a pay raise could be such a pain in the butt.

Thanks in advance,
mdebar
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