402(g)(7) Limit Eligibility
Employer Qualifications for the 402(g)(7) Limit
The 402(g)(7) limit is only available to employees of the following types of organizations:
•Educational organizations
•Hospitals
•Home health service agencies
•Health and welfare service agencies
•Churches, including a convention or association of churches
Employee Qualifications for the 402(g)(7) Limit
Eligible employees may be able to contribute an amount in excess of the 402(g)(7) limit if they meet both of the following conditions:
•They must have 15 or more years of service with the same employer.
•The amount of all previous voluntary deferrals does not exceed the individual's years of service with the employer times $5,000.
402(g)(7) Limit Data Input
Below is the list of data inputs on the 402(g)(7) Limit tab.
402(g)(7) Limit: Total prior years made in excess...
Enter the total contributions made in excess of the respective years' limits.
| Note: | In April 2007, the IRS clarified that the "prior contributions" included all prior Roth 403(b) and Roth 401(k) contributions. |
Does the client's employer contribute excess fringe benefit money to the TSA?
If yes, enter the amount the employer will deposit (e.g. the employer contributes excess Section 125 monies to the qualified plan).
Why is this important?
The MAC calculation requires that the calculation include all employer contributions; therefore, this value is needed.
Total Prior Years' Contributions
Enter the prior years' contributions to the various types of retirement plans.
