No. of Recommendations: 0
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 .

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.