What are the eligibility requirements for 403(b) plan 15-years-of-service catch-up contributions?
Four types of 403(b) plan sponsors are permitted to include 15-years-of-service contributions:
- Hospitals
- Health & welfare agencies, including home health services agencies
- Religious organizations
- Education institutions
Plan sponsors who include the 15-years-of-service catch-up in their 403(b) plan must limit its availability to employees who:
- Have 15 or more years of service with the plan sponsor by the end of the tax year,
- Have not contributed an average of $5,000 or more for each year of service, and
- Have not used up the per-employer lifetime limit of $15,000 available under this catch-up.
Eligible employees may contribute up to an additional $3,000 per year under this catch-up feature.
Our services include the review and monitoring of all participant requests to make 15-years-of-service catch-up contributions.
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