This chart illustrates basic provisions of the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) related to retirement plans available to CSU employees.  NOTE:  These guidelines are not available until the state conforming tax issue is resolved.

 

 

Plan Provision

403(b)

 

401(k)

Administered by DPA’s Savings Plus Program

457

Administered by DPA’s Savings Plus Program

402(g) Elective Deferral Limit

This is an annual maximum.  It will be indexed annually for inflation after 2006.

 

$11,000 in 2002

$12,000 in 2003

$13,000 in 2004

$14,000 in 2005

$15,000 in 2006

 

$11,000 in 2002

$12,000 in 2003

$13,000 in 2004

$14,000 in 2005

$15,000 in 2006

 

$11,000 in 2002

$12,000 in 2003

$13,000 in 2004

$14,000 in 2005

$15,000 in 2006

IRC Section 402(g)(8) Catch-up

Also referred to as the “15-year” catch-up.  Permits certain long-term employees who have under-deferred in previous years to make additional contributions beyond the IRC Section 402(g) limit.  Applicable only to the 403(b) plan and can be used concurrently with the IRC Section 414(v) catch-up.

 

$3,000 per year beyond the 402(g) limit, for up to 5 years or a lifetime maximum of $15,000.

 

Not applicable

 

Not applicable

IRC Section 414(v) Catch-up

Also referred to as the “over-age-50” catch-up.  Permits participants who have attained at least age 50 by the end of a calendar year to make catch-up contributions on a graduated scale.  Only an annual total of $1,000 is permitted even if the employee is in 2 plans.

 

$1,000 in 2002

$2,000 in 2003

$3,000 in 2004

$4,000 in 2005

$5,000 in 2006

 

$1,000 in 2002

$2,000 in 2003

$3,000 in 2004

$4,000 in 2005

$5,000 in 2006

 

$1,000 in 2002

$2,000 in 2003

$3,000 in 2004

$4,000 in 2005

$5,000 in 2006

IRC Section 457(b) Catch-up

Also referred to as the “two times elective deferral” catch-up.  Provides a maximum lifetime amount and is available to participants who have under-deferred to the 457(b) plan in prior years.  Permits eligible participants to defer twice the amount of the elective deferral amount during the last three years before retirement.  Applicable only to the 457 plan and can be used concurrently with the 403(b) plan’s IRC Section 402(g)(8) catch-up; however, it cannot be used in conjunction with the IRC Section 414(v) “over-age-50” catch-up.

 

Not applicable

 

No applicable

 

$22,000 in 2002

$24,000 in 2003

$26,000 in 2004

$28,000 in 2005

$30,000 in 2006