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PP writes:

<<Pixy: You've stated emphatically that the Employee limit for salary deferrals into a 403b account is 25% or $10k, whichever is less. I just reviewed IRS Publication 571 and believe the "employee" limit is 20%. The "Employer" limit is 25%. Please verify...>>

Do you ever think you're absolutely positive about something and therefore don't have to look it up again? I did in this case. I just "knew" the limit for a 403b plan had been changed at the same time the 401k percentage limit switched from 25% of net compensation after contributions to 25% of gross compensation. Your query forced me to the books. There, much to my chagrin and embarrassment, I discovered the employee is still limited to 20% of compensation. You are totally correct in that only the combined contributions of the employee and employer may be 25% and only the employer -- not the employee -- may contribute the full 25%.

My apologies to all for the misleading comment, and my thanks to PeppermintPatty for catching the error. I am obviously beginning to suffer from hardening of the grey cells. I guess that's a function of the aging process. After all, I did just celebrate my 29th birthday a few months ago. It was my 31st anniversary of doing so. Who says the brain can't get hung up on some things? Fortunately, though, we have some very astute readers around to keep us factual.

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