No. of Recommendations: 0
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

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

Thanks in advance,
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.