Bob asks:

<<TMFPixy writes (in part):

That would mean you must do so, and you must also keep track of those contributions to ensure you do not exceed the lesser of 20% of your pay or $10K per year.

I reply:

Uh, oh. I just checked with my wife, and her total 403(b) contributions for this year exceed 20% of her gross salary by $160.11. She has received her last paycheck and made her last contribution for the year. How do we fix this?>>

That's no super biggie because the amount is small. Essentially, you can just include it as income on line 7 on your 1040 and leave it in the 403b. That $103+ dollars will be taxed again on withdrawal from the plan, but over the years the compounding should offset the taxes anyway. For details, get IRS Pub 571 (Tax-Sheltered Annuity Programs for Employees of Public Schools and Certain Tax-Exempt Organizations) available at http://www.irs.ustreas.gov/prod/forms_pubs/index.html .

Regards..Pixy