The IRS has published an issue snapshot discussing catch-up contributions in 403(b) plans. 403(b) plans may permit participants to make age-50 catch-up contributions, which are also allowed in 401(k) and governmental 457(b) plans, but they may also allow a special 15-year catch-up contributions for participants. Under the special 403(b) catch-up, employees of a qualified organization may contribute an increased dollar amount under IRC Section 402(g)(1) if they’ve completed at least 15 years of service with the organization.
Click here to read the issue snapshot.