Department of the Treasury

Internal Revenue Service

Publication 571

(Rev. January 2024)

Cat. No. 46581C

Tax-Sheltered

Annuity Plans

(403(b) Plans)

For Employees of Public 

Schools and Certain

Tax-Exempt 

Organizations

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Future Developments

For the latest information about developments related to 

Pub. 571, such as legislation enacted after it was 

published, go to IRS.gov/Pub571.

What’s New for 2023

Retirement savings contributions credit. For 2023, 

the adjusted gross income limitations have increased from 

$68,000 to $73,000 for married filing jointly filers; from 

$51,000 to $54,750 for head of household filers; and from 

$34,000 to $36,500 for single, married filing separately, or 

qualifying surviving spouse with dependent child filers. 

See chapter 10, Retirement Savings Contributions Credit 

(Saver's Credit), for additional information.

De minimis financial incentives. For plan years beginning after December 29, 2022, section 113 of the SECURE 2.0 Act of 2022 permits employers to offer their employees de minimis financial incentives if they make 

elective deferrals.

Limit on elective deferrals. For 2023, the limit on elective deferrals has increased from $20,500 to $22,500.

Limit on annual additions. For 2023, the limit on annual additions has increased from $61,000 to $66,000.

Designated Roth nonelective contributions. Section 

604 of the SECURE 2.0 Act of 2022 permits certain nonelective contributions that are made after December 29, 

2022, to be designated as Roth contributions.

What’s New for 2024

Retirement savings contributions credit. For 2024, 

the adjusted gross income limitations have increased from 

$73,000 to $76,500 for married filing jointly filers; from 

$54,750 to $57,375 for head of household filers; and from 

$36,500 to $38,250 for single, married filing separately, or 

qualifying surviving spouse with dependent child filers. 

See chapter 10, Retirement Savings Contributions Credit 

(Saver's Credit), for additional information.

Limit on elective deferrals. For 2024, the limit on elective deferrals has increased from $22,500 to $23,000.

Limit on annual additions. For 2024, the limit on annual additions has increased from $66,000 to $69,000.

Distributions for emergency personal expenses. For 

distributions made after December 31, 2023, an emergency personal expense distribution may be made from a 

403(b) plan and is not subject to the 10% additional tax on 

early distributions. An emergency personal expense distribution is a distribution made from your 403(b) plan (or 

other applicable eligible retirement plan) that is used for 

purposes of meeting unforeseeable or immediate financial 

needs relating to necessary personal for family emergency expenses. There are certain limits that apply for 

emergency personal expense distributions (one per 

calendar year, dollar limits of generally not more than 

Jan 16, 2024
$1,000, and limits on subsequent distributions). You may 

repay an emergency personal expense distributions at 

any time during the 3-year period beginning on the day after the date on which you received the distribution.

Distributions to a domestic abuse victim. For distributions made after December 31, 2023, a distribution to a 

domestic abuse victim may be made from a 403(b) plan 

and is not subject to the 10% additional tax on early distributions. A distribution to a domestic abuse victim is a distribution made from your 403(b) plan (or other applicable 

eligible retirement plan) that is no greater than $10,000 

(indexed for inflation) and is made during the 1-year period beginning on any date on which you are the victim of 

domestic abuse by a spouse or domestic partner. You 

may repay this distribution at any time during the 3-year 

period beginning on the day after the date on which you 

received the distribution.

Reminders

Qualified disaster recovery distributions. A qualified 

disaster recovery distribution is a qualified disaster distribution that meets certain criteria as described in the SECURE 2.0 Act of 2022. It is a distribution made from an eligible retirement plan to an individual whose main home 

was in a qualified disaster area. You must have sustained 

an economic loss because of the disaster to receive distribution. For more information, see Pub. 575.

Repayment of qualified COVID-19 distributions. 

Generally, you may repay any portion of a qualified 

COVID-19 distribution that is eligible for tax-free rollover 

treatment to an eligible retirement plan. You have 3 years 

from the day after the date you received a qualified 

COVID-19 distribution to make a repayment. The amount 

of your repayment can't be more than the amount of the 

original distribution. Amounts that are repaid are treated 

as a trustee-to-trustee transfer and are not included in income.

Income inclusion over 3-year period. You may choose 

to have qualified COVID-19 distributions included in income in equal amounts over 3 years. However, if you 

elect, you can include the entire distribution in your income in the year it was received.

More information. See Pubs. 575, 590-A, and 590-B for 

more information on new rules as a result of P.L. 116-136 

that provide for tax-favored withdrawals, income inclusion, 

and repayments for individuals who were diagnosed with 

or suffered economic losses as a result of COVID-19.

Photographs of missing children. The IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring 

these children home by looking at the photographs and 

calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Introduction

This publication can help you better understand the tax 

rules that apply to your 403(b) (tax-sheltered annuity) 

plan.

In this publication, you will find information to help you 

do the following.

• Determine the maximum amount that can be contributed to your 403(b) account in 2024.

• Determine the maximum amount that could have been 

contributed to your 403(b) account in 2023.

• Identify excess contributions.

• Understand the basic rules for claiming the retirement 

savings contributions credit.

• Understand the basic rules for distributions and rollovers from 403(b) accounts.

This publication doesn’t provide specific information on 

the following topics.

• Distributions from 403(b) accounts. This is covered in 

Pub. 575, Pension and Annuity Income.

• Rollovers. This is covered in Pub. 590-A, Contributions 

to Individual Retirement Arrangements (IRAs), and 

Pub. 590-B, Distributions from Individual Retirement 

Arrangements (IRAs).

How to use this publication. This publication is organized into chapters to help you find information easily.

Chapter 1 answers questions frequently asked by 

403(b) plan participants.

Chapters 2 through 6 explain the rules and terms you 

need to know to figure the maximum amount that could 

have been contributed to your 403(b) account for 2023 

and the maximum amount that can be contributed to your 

403(b) account in 2024.

Chapter 7 provides general information on the prevention and correction of excess contributions to your 403(b) 

account.

Chapter 8 provides general information on distributions, 

transfers, and rollovers.

Chapter 9 provides blank worksheets that you will need 

to accurately and actively participate in your 403(b) plan. 

Filled-in samples of most of these worksheets can be 

found throughout this publication.

Chapter 10 explains the rules for claiming the retirement savings contributions credit (saver's credit).

Comments and suggestions. We welcome your comments about this publication and suggestions for future 

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue 

Service, Tax Forms and Publications, 1111 Constitution 

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will 

consider your comments and suggestions as we revise 

our tax forms, instructions, and publications. Don’t send 

2 Publication 571 (1-2024)
tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have 

a tax question not answered by this publication or the How 

To Get Tax Help section at the end of this publication, go 

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search 

feature or by viewing the categories listed.

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Don’t resubmit requests you've already sent us. You can 

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Useful Items

You may want to see:

Publication

Social Security and Other Information for 

Members of the Clergy and Religious Workers

Pension and Annuity Income

Contributions to Individual Retirement 

Arrangements (IRAs)

Distributions from Individual Retirement 

Arrangements (IRAs)

Form (and Instructions)

age and Tax Statement

Distributions From Pensions, Annuities, 

Retirement or Profit-Sharing Plans, IRAs, 

Insurance Contracts, etc.

Additional Taxes on Qualified Plans (Including 

IRAs) and Other Tax-Favored Accounts

330 Return of Excise Taxes Related to Employee 

Benefit Plans

8880 Credit for Qualified Retirement Savings 

Contributions

1.

403(b) Plan Basics

This chapter introduces you to 403(b) plans and accounts. 

Specifically, the chapter answers the following questions.

• What is a 403(b) plan?

 517

 575

 590-A

 590-B

 W-2

 1099-R

 5329

 5330

 8880

• What are the benefits of contributing to a 403(b) plan?

• Who can participate in a 403(b) plan?

• Who can set up a 403(b) account?

• How can contributions be made to my 403(b) account?

• Do I report contributions on my tax return?

• How much can be contributed to my 403(b) account?

What Is a 403(b) Plan?

A 403(b) plan, also known as a tax-sheltered annuity 

(TSA) plan, is a retirement plan for certain employees of 

public schools, employees of certain tax-exempt organizations, and certain ministers.

Individual accounts in a 403(b) plan can be any of the 

following types.

• An annuity contract, which is a contract provided 

through an insurance company.

• A custodial account, which is an account invested in 

mutual funds.

• A retirement income account set up for church employees. Generally, retirement income accounts can 

invest in either annuities or mutual funds.

We use the term “403(b) account” to refer to any one of 

these funding arrangements throughout this publication, 

unless otherwise specified.

What Are the Benefits of 

Contributing to a 403(b) Plan?

There are three benefits to contributing to a 403(b) plan.

• The first benefit is that you don’t pay income tax on allowable contributions until you begin making withdrawals from the plan, usually after you retire. Allowable 

contributions to a 403(b) plan are either excluded or 

deducted from your income. However, if your contributions are made to a Roth contribution program, this 

benefit doesn’t apply. Instead, you pay income tax on 

the contributions to the plan but distributions from the 

plan (if certain requirements are met) are tax free.

Note. Generally, employees must pay social security and Medicare tax on their contributions to a 403(b) 

plan, including those made under a salary reduction 

agreement. See chapter 4, Limit on Elective Deferrals, 

for more information.

• The second benefit is that earnings and gains on 

amounts in your 403(b) account aren’t taxed until you 

withdraw them. Earnings and gains on amounts in a 

Roth contribution program aren’t taxed if your withdrawals are qualified distributions. Otherwise, they are 

taxed when you withdraw them.

• The third benefit is that you may be eligible to take a 

credit for elective deferrals contributed to your 403(b) 

Publication 571 (1-2024) Chapter 1 403(b) Plan Basics 3
account. See chapter 10, Retirement Savings Contributions Credit (Saver's Credit), for more information.

Excluded. If an amount is excluded from your income, 

it isn’t included in your total wages on your Form W-2. This 

means that you don’t report the excluded amount on your 

tax return.

Deducted. If an amount is deducted from your income, it is included with your other wages on your Form 

W-2. You report this amount on your tax return, but you are 

allowed to subtract it when figuring the amount of income 

on which you must pay tax.

Who Can Participate in a 

403(b) Plan?

Any eligible employee can participate in a 403(b) plan.

Eligible employees. The following employees are eligible to participate in a 403(b) plan.

• Employees of tax-exempt organizations established 

under section 501(c)(3). These organizations are usually referred to as “section 501(c)(3) organizations” or 

simply “501(c)(3) organizations.”

• Employees of public school systems who are involved 

in the day-to-day operations of a school.

• Employees of cooperative hospital service organizations.

• Civilian faculty and staff of the Uniformed Services 

University of the Health Sciences.

• Employees of public school systems organized by Indian tribal governments who are involved in the 

day-to-day operations of a school.

• Certain ministers (explained next).

Ministers. The following ministers are eligible employees for whom a 403(b) account can be established.

1. Ministers employed by section 501(c)(3) organizations.

2. Self-employed ministers. A self-employed minister is 

treated as employed by a tax-exempt organization 

that is an eligible employer.

3. Ministers (chaplains) who meet both of the following 

requirements.

a. They are employed by organizations that aren’t 

section 501(c)(3) organizations.

b. They function as ministers in their day-to-day professional responsibilities with their employers.

Throughout this publication, the term “chaplain” will be 

used to mean ministers described in the third category in 

the list above.

Example. A minister employed as a chaplain by a 

state-run prison and a chaplain in the U.S. Armed Forces 

are eligible employees because their employers aren’t 

section 501(c)(3) organizations and they are employed as 

ministers.

Universal availability. Generally, all eligible employees (with certain exceptions) of an employer must be permitted to make elective deferrals (including Roth elective 

deferrals) if any employee of the employer may make elective deferrals. If your employer offers a 403(b) plan, you 

should have received information about your eligibility to 

participate.

Who Can Set up a 403(b) 

Account?

You can’t set up your own 403(b) account. Only employers 

can set up 403(b) accounts. A self-employed minister 

can’t set up a 403(b) account for its own benefit. If you are 

a self-employed minister, only the organization (denomination) with which you are associated can set up an account for your benefit.

How Can Contributions Be 

Made to My 403(b) Account?

Generally, only your employer can make contributions to 

your 403(b) account. However, some plans will allow you 

to make after-tax contributions (defined below).

The following types of contributions can be made to 

403(b) accounts.

1. Elective deferrals. These are contributions made under a salary reduction agreement. This agreement allows your employer to withhold money from your paycheck to be contributed directly into a 403(b) account 

for your benefit. Except for Roth contributions, you 

don’t pay income tax on these contributions until you 

withdraw them from the account. If your contributions 

are Roth contributions, you pay taxes on your contributions but any qualified distributions from your Roth 

account are tax free.

2. Nonelective contributions. These are employer 

contributions that aren’t made under a salary reduction agreement. Nonelective contributions include 

matching contributions, discretionary contributions, 

and mandatory contributions made by your employer. 

Except for Roth nonelective contributions, you don't 

pay income tax on these contributions until you withdraw them from the account. If your nonelective contributions are designated as Roth contributions, you 

pay taxes on your contributions, but any qualified distributions from your Roth account are tax free.

3. After-tax contributions. These are contributions 

(that aren’t Roth contributions) you make with funds 

that you must include in income on your tax return. A 

salary payment on which income tax has been withheld is a source of these contributions. If your plan 

4 Chapter 1 403(b) Plan Basics Publication 571 (1-2024)
allows you to make after-tax contributions, they aren’t 

excluded from income and you can’t deduct them on 

your tax return.

4. A combination of any of the three contribution types 

listed above.

Self-employed minister. If you are a self-employed minister, you are considered both an employee and an employer, and you can contribute to a retirement income account for your own benefit.

Do I Report Contributions on 

My Tax Return?

Generally, you don’t report contributions to your 403(b) account (except Roth contributions) on your tax return. Your 

employer will report contributions on your 2023 Form W-2. 

Elective deferrals will be shown in box 12 with code E for 

pre-tax amounts and code BB for Roth amounts, and the 

Retirement plan box will be checked in box 13. If you are a 

self-employed minister or chaplain, see the discussions 

next.

Self-employed ministers. If you are a self-employed 

minister, you must report the total contributions as a deduction on your tax return. Deduct your contributions on 

line 16 of the 2023 Schedule 1 (Form 1040).

Chaplains. If you are a chaplain and your employer 

doesn’t exclude contributions made to your 403(b) account from your earned income, you may be able to take a 

deduction for those contributions on your tax return.

However, if your employer has agreed to exclude the 

contributions from your earned income, you won’t be allowed a deduction on your tax return.

If you can take a deduction, include your contributions 

on line 24g of the 2023 Schedule 1 (Form 1040).

How Much Can Be Contributed 

to My 403(b) Account?

There are limits on the amount of contributions that can be 

made to your 403(b) account each year. If contributions 

made to your 403(b) account are more than these contribution limits, penalties may apply.

Chapters 2 through 6 provide information on how to determine the amount that can be contributed to your 403(b) 

account.

Worksheets are provided in chapter 9 to help you determine the maximum amount that can be contributed to your 

403(b) account each year. Chapter 7, Excess Contributions, describes how to prevent excess contributions and 

how to get an excess contribution corrected.

2.

Maximum Amount 

Contributable (MAC)

Throughout this publication, the limit on the amount that 

can be contributed to your 403(b) account for any year is 

referred to as your maximum amount contributable (MAC). 

This chapter:

• Introduces the components of your MAC,

• Tells you how to figure your MAC, and

• Tells you when to figure your MAC.

Components of Your MAC

Generally, before you can determine your MAC, you must 

first figure the components of your MAC. The components 

of your MAC are:

• The limit on annual additions (chapter 3), and

• The limit on elective deferrals (chapter 4).

How Do I Figure My MAC?

Generally, contributions to your 403(b) account are limited 

to the lesser of:

• The limit on annual additions, or

• The limit on elective deferrals.

Depending upon the type of contributions made to your 

403(b) account, only one of the limits may apply to you.

Which limit applies. Whether you must apply one or 

both of the limits depends on the type of contributions 

made to your 403(b) account during the year.

Elective deferrals only. If the only contributions made 

to your 403(b) account during the year were elective deferrals made under a salary reduction agreement, you will 

need to figure both of the limits. Your MAC is the lesser of 

the two limits.

Nonelective contributions only. If the only contributions made to your 403(b) account during the year were 

nonelective contributions (employer contributions not 

made under a salary reduction agreement), you will only 

need to figure the limit on annual additions. Your MAC is 

the limit on annual additions.

Elective deferrals and nonelective contributions. If 

the contributions made to your 403(b) account were a 

combination of both elective deferrals made under a salary reduction agreement and nonelective contributions 

(employer contributions not made under a salary 

Publication 571 (1-2024) Chapter 2 Maximum Amount Contributable (MAC) 5
reduction agreement), you will need to figure both limits. 

Your MAC is the limit on the annual additions.

Catch-up contributions. If you are age 50 or older, 

you may be able to make additional catch-up contributions, which are explained in chapter 6.

You need to figure the limit on elective deferrals to determine if you have excess elective deferrals, which are 

explained in chapter 7.

Worksheets. Worksheets are available in chapter 9 to 

help you figure your MAC.

When Should I Figure My 

MAC?

At the beginning of 2024, you should refigure your 2023 

MAC based on your actual compensation for 2023. This 

will allow you to determine if the amount that has been 

contributed to your 403(b) account for 2023 has exceeded 

the allowable limits. In some cases, this will allow you to 

avoid penalties and additional taxes. See chapter 7.

Generally, you should figure your MAC for the current 

year at the beginning of each tax year using a conservative estimate of your compensation. If your compensation 

changes during the year, you should refigure your MAC 

based on a revised conservative estimate. By doing this, 

you will be able to determine if contributions to your 403(b) 

account can be increased or should be decreased for the 

year.

3.

Limit on Annual Additions

The first component of MAC is the limit on annual additions. This is a limit on the total contributions (elective deferrals, nonelective contributions, and after-tax contributions) that can be made to your 403(b) account. The limit 

on annual additions is generally the lesser of:

• $66,000 for 2023 and $69,000 for 2024, or

• 100% of your includible compensation for your most 

recent year of service.

More than one 403(b) account. If you contributed to more than one 403(b) account, you must 

combine the contributions made to all 403(b) accounts maintained by your employer. If you participate in 

more than one 403(b) plan maintained by different employers, you don’t need to combine amounts for annual 

addition limits.

Ministers and church employees. If you are a minister or a church employee, you may be able to increase 

CAUTION

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your limit on annual additions or use different rules when 

figuring your limit on annual additions. For more information, see chapter 5.

Participation in a qualified plan. If you participated 

in a 403(b) plan and a qualified plan, you must combine 

contributions made to your 403(b) account with contributions to a qualified plan and simplified employee pensions 

of all corporations, partnerships, and sole proprietorships 

in which you have more than 50% control to determine the 

total annual additions.

You can use Part I of Worksheet 1 in chapter 9 to figure 

your limit on annual additions.

Includible Compensation for 

Your Most Recent Year of 

Service

Definition. Generally, includible compensation for your 

most recent year of service is the amount of taxable wages and benefits you received from the employer that 

maintained a 403(b) account for your benefit during your 

most recent year of service.

When figuring your includible compensation for your 

most recent year of service, keep in mind that your most 

recent year of service may not be the same as your employer's most recent annual work period. This can happen 

if your tax year isn’t the same as your employer's annual 

work period.

When figuring includible compensation for your most 

recent year of service, don’t mix compensation or service 

of one employer with compensation or service of another 

employer.

Most Recent Year of Service

Your most recent year of service is your last full year of 

service, ending on the last day of your tax year that you 

worked for the employer that maintained a 403(b) account 

on your behalf.

Tax year different from employer's annual work period. If your tax year isn’t the same as your employer's 

annual work period, your most recent year of service is 

made up of parts of at least two of your employer's annual 

work periods.

Example. A professor who reports income on a calendar-year basis is employed on a full-time basis by a university that operates on an academic year (October 

through May). To figure the includible compensation for 

2023, the professor's most recent year of service is from 

January through May 2023 and from October through December 2023.

6 Chapter 3 Limit on Annual Additions Publication 571 (1-2024)
Figuring Your Most Recent Year of Service

To figure your most recent year of service, begin 

by determining what is a full year of service for 

your position. A full year of service is equal to 

full-time employment for your employer's annual work period.

After identifying a full year of service, begin counting 

the service you have provided for your employer starting 

with the service provided in the current year.

Part-time or employed only part of the year. If you are 

a part-time or a full-time employee who is employed for 

only part of the year, your most recent year of service is 

your service this year and your service for as many previous years as is necessary to total 1 full year of service. To 

determine your most recent year of service, add the following periods of service.

• Your service during the year for which you are figuring 

the limit on annual additions.

• Your service during your preceding tax years until the 

total service equals 1 year of service or you have figured all of your service with the employer.

Example. You were employed on a full-time basis 

from July through December 2021 (1/2 year of service), 

July through December 2022 (1/2 year of service), and 

October through December 2023 (1/4 year of service). 

Your most recent year of service for figuring your limit on 

annual additions for 2023 is the total of your service during 

2023 (1/4 year of service), your service during 2022 (1/2 

year of service), and your service during the months of 

October through December 2021 (1/4 year of service).

Not yet employed for 1 year. If, at the close of the year, 

you haven’t yet worked for your employer for 1 year (including time you worked for the same employer in all earlier years), use the period of time you have worked for the 

employer as your most recent year of service.

Includible Compensation

After identifying your most recent year of service, the next 

step is to identify the includible compensation associated 

with that full year of service.

Includible compensation isn’t the same as income included on your tax return. Compensation is a combination 

of income and benefits received in exchange for services 

provided to your employer.

Generally, includible compensation is the amount of income and benefits:

• Received from the employer who maintains your 

403(b) account, and

• It must be included in your income.

Includible compensation includes the following 

amounts.

• Elective deferrals (employer's contributions made on 

your behalf under a salary reduction agreement).

• Amounts contributed or deferred by your employer under a section 125 cafeteria plan.

• Amounts contributed or deferred, at the election of the 

employee, under an eligible section 457 nonqualified 

deferred compensation plan (state or local government or tax-exempt organization plan).

Note. For information about treating elective deferrals 

under section 457 plans as Roth contributions, see 

Pub. 575.

• Wages, salaries, and fees for personal services 

earned with the employer maintaining your 403(b) account.

• Income otherwise excluded under the foreign earned 

income exclusion.

• Pre-tax contributions (employer's contributions made 

on your behalf according to your election) to a qualified transportation fringe benefit plan.

Includible compensation does not include the following 

items.

1. Your employer's contributions to your 403(b) account.

2. Compensation earned while your employer wasn’t an 

eligible employer.

3. Your employer's contributions to a qualified plan that:

a. Are on your behalf, and

b. Are excludable from income.

4. The cost of incidental life insurance. See Cost of Incidental Life Insurance, later.

If you are a church employee or a foreign missionary, figure includible compensation using the rules 

explained in chapter 5.

Contributions after retirement. Nonelective contributions may be made for an employee for up to 5 years after 

retirement. These contributions would be based on includible compensation for the last year of service before retirement.

Cost of Incidental Life Insurance

Includible compensation doesn’t include the cost of incidental life insurance.

If all of your 403(b) accounts invest only in mutual 

funds, then you have no incidental life insurance.

If you have an annuity contract, a portion of the cost of 

that contract may be for incidental life insurance. If so, the 

cost of the insurance is taxable to you in the year contributed and is considered part of your basis when distributed. Your employer will include the cost of your insurance 

as taxable wages in box 1 of Form W-2.

Not all annuity contracts include life insurance. Contact 

your plan administrator to determine if your contract includes incidental life insurance. If it does, you will need to 

CAUTION

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CAUTION

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Publication 571 (1-2024) Chapter 3 Limit on Annual Additions 7
figure the cost of life insurance each year the policy is in 

effect.

Figuring the cost of incidental life insurance. 

If you have determined that part of the cost of your 

annuity contract is for an incidental life insurance 

premium, you will need to determine the amount of the 

premium and subtract it from your includible compensation.

To determine the amount of the life insurance premiums, you will need to know the following information.

• The value of your life insurance contract, which is the 

amount payable upon your death.

• The cash value of your life insurance contract at the 

end of the tax year.

• Your age on your birthday nearest the beginning of the 

policy year.

• Your current life insurance protection under an ordinary retirement income life insurance policy, which is 

the amount payable upon your death minus the cash 

value of the contract at the end of the year.

You can use Worksheet A in chapter 9 to determine the 

cost of your incidental life insurance.

Example. Your new contract provides that your beneficiary will receive $10,000 if you should die before retirement. Your cash value in the contract at the end of the first 

year is zero. Your current life insurance protection for the 

first year is $10,000 ($10,000 − $0).

The cash value in the contract at the end of year 2 is 

$1,000, and the current life insurance protection for the 

second year is $9,000 ($10,000 – $1,000).

The 1-year cost of the protection can be calculated by 

using Figure 3-1. The premium rate is determined based 

on your age on your birthday nearest the beginning of the 

policy year.

Figure 3-1. Table of 1-Year Term Premiums 

for $1,000 Life Insurance Protection

Age Cost Age Cost Age Cost

0 .... $0.70 35 ... $0.99 70 ... $20.62

1 .... 0.41 36 ... 1.01 71 ... 22.72

2 .... 0.27 37 ... 1.04 72 ... 25.07

3 .... 0.19 38 ... 1.06 73 ... 27.57

4 .... 0.13 39 ... 1.07 74 ... 30.18

5 .... 0.13 40 ... 1.10 75 ... 33.05

6 .... 0.14 41 ... 1.13 76 ... 36.33

7 .... 0.15 42 ... 1.20 77 ... 40.17

8 .... 0.16 43 ... 1.29 78 ... 44.33

9 .... 0.16 44 ... 1.40 79 ... 49.23

10 ... 0.16 45 ... 1.53 80 ... 54.56

11 ... 0.19 46 ... 1.67 81 ... 60.51

12 ... 0.24 47 ... 1.83 82 ... 66.74

13 ... 0.28 48 ... 1.98 83 ... 73.07

14 ... 0.33 49 ... 2.13 84 ... 80.35

15 ... 0.38 50 ... 2.30 85 ... 88.76

16 ... 0.52 51 ... 2.52 86 ... 99.16

17 ... 0.57 52 ... 2.81 87 ... 110.40

18 ... 0.59 53 ... 3.20 88 ... 121.85

19 ... 0.61 54 ... 3.65 89 ... 133.40

20 ... 0.62 55 ... 4.15 90 ... 144.30

21 ... 0.62 56 ... 4.68 91 ... 155.80

22 ... 0.64 57 ... 5.20 92 ... 168.75

23 ... 0.66 58 ... 5.66 93 ... 186.44

24 ... 0.68 59 ... 6.06 94 ... 206.70

25 ... 0.71 60 ... 6.51 95 ... 228.35

26 ... 0.73 61 ... 7.11 96 ... 250.01

27 ... 0.76 62 ... 7.96 97 ... 265.09

28 ... 0.80 63 ... 9.08 98 ... 270.11

29 ... 0.83 64 ... 10.41 99 ... 281.05

30 ... 0.87 65 ... 11.90

31 ... 0.90 66 ... 13.51

32 ... 0.93 67 ... 15.20

33 ... 0.96 68 ... 16.92

34 ... 0.98 69 ... 18.70

If the current published premium rates per $1,000 

of insurance protection charged by an insurer for 

individual 1-year term life insurance premiums 

available to all standard risks are lower than those in the 

preceding table, you can use the lower rates for figuring 

the cost of insurance in connection with individual policies 

issued by the same insurer.

Example 1. An employee, age 44, and the employer 

enter into a 403(b) plan that will provide the employee with 

a $500 a month annuity upon retirement at age 65. The 

agreement also provides that if the employee should die 

before retirement, the beneficiary will receive the greater 

of $20,000 or the cash surrender value in the life insurance contract. Using the facts presented, we can determine the cost of the employee’s life insurance protection 

as shown in Table 3-1.

The employer has included $28 for the cost of the life 

insurance protection in the employee’s current year income. When figuring includible compensation for this 

year, the employee will subtract $28.

CAUTION

!

8 Chapter 3 Limit on Annual Additions Publication 571 (1-2024)
Worksheet A. Cost of Incidental 

Life Insurance

Note. Use this worksheet to figure the cost of incidental 

life insurance included in your annuity contract. This 

amount will be used to figure includible compensation for 

your most recent year of service.

Table 3-1. 

1. Enter the value of the contract (amount 

payable upon your death) ........... 1. $20,000.00

2. Enter the cash value in the contract at the 

end of the year .................. 2. 0.00

3. Subtract line 2 from line 1. This is the value 

of your current life insurance protection ... 3. $20,000.00

4. Enter your age on your birthday nearest the 

beginning of the policy year .......... 4. 44

5. Enter the 1-year term premium for $1,000 

of life insurance based on your age. (From 

Figure 3-1) ..................... 5. $1.40

6. Divide line 3 by $1,000 ............. 6. 20

7. Multiply line 6 by line 5. This is the cost of 

your incidental life insurance .......... 7. $28.00

Example 2. The employee’s cash value in the contract at the end of the second year is $1,000. In year 2, the 

cost of the employee’s life insurance is figured as shown in 

Table 3-2.

In year 2, the employer will include $29.07 in the employee’s current year income. The employee will subtract 

this amount when figuring the includible compensation.

Worksheet A. Cost of Incidental 

Life Insurance

Note. Use this worksheet to figure the cost of incidental 

life insurance included in your annuity contract. This 

amount will be used to figure includible compensation for 

your most recent year of service.

Table 3-2. 

1. Enter the value of the contract (amount 

payable upon your death) ........... 1. $20,000.00

2. Enter the cash value in the contract at the 

end of the year .................. 2. $1,000.00

3. Subtract line 2 from line 1. This is the value 

of your current life insurance protection . . 3. $19,000.00

4. Enter your age on your birthday nearest 

the beginning of the policy year ....... 4. 45

5. Enter the 1-year term premium for $1,000 

of life insurance based on your age. (From 

Figure 3-1) .................... 5. $1.53

6. Divide line 3 by $1,000 ............. 6. 19

7. Multiply line 6 by line 5. This is the cost of 

your incidental life insurance ......... 7. $29.07

Figuring Includible Compensation for Your 

Most Recent Year of Service

You can use Worksheet B in chapter 9 to determine your includible compensation for your most 

recent year of service.

Example. Max has been periodically working full-time 

for a local hospital since September 2021. Max needs to 

figure the limit on annual additions for 2024. The hospital's 

normal annual work period for employees in Max's general 

type of work runs from January to December.

During the periods that Max was employed with the 

hospital, the hospital has always been eligible to provide a 

403(b) plan to employees. Additionally, the hospital has 

never provided the employees with a 457 deferred compensation plan, a transportation fringe benefit plan, or a 

cafeteria plan.

Max has never worked abroad and there is no life insurance provided under the plan.

Table 3-3 shows the service Max provided to the employer, compensation for the periods worked, elective deferrals, and taxable wages.

Max’s Compensation

Note.This table shows information Max will use to figure 

includible compensation for the most recent year of 

service.

Table 3-3.

Year Years of 

Service

Taxable 

Wages

Elective 

Deferrals

2024 6/12 of

 a year

$42,000 $2,000

2023 4/12 of

 a year

$16,000 $1,650

2022 4/12 of

 a year

$16,000 $1,650

Before figuring the limit on annual additions, Max must 

figure includible compensation for the most recent year of 

service.

Because Max isn’t planning to work the entire 2024 

year, Max’s most recent year of service will include the 

time planning to work in 2024 plus time worked in the preceding 3 years until the time worked for the hospital totals 

1 year. If the total time worked is less than 1 year, Max will 

treat it as if it were 1 year. Max figures the most recent 

year of service shown in the following list.

• Time Max will work in 2024 is 6/12 of a year.

• Time worked in 2023 is 4/12 of a year. All of this time 

will be used to determine Max's most recent year of 

service.

• Time worked in 2022 is 4/12 of a year. Max only needs 

2 months of the 4 months worked in 2022 to have 

enough time to total 1 full year. Because Max needs 

only 1/2 of the actual time worked, Max will use only 1/2 

of income earned during that period to figure wages 

that will be used in figuring the includible compensation.

Using the information provided in Table 3-3, wages for 

Max's most recent year of service are $66,000 ($42,000 + 

$16,000 + $8,000). Max’s includible compensation for the 

Publication 571 (1-2024) Chapter 3 Limit on Annual Additions 9
most recent year of service is figured as shown in Table 3-4.

After figuring the includible compensation, Max determines the limit on annual additions for 2024 to be 

$69,000, the lesser of the includible compensation, 

$70,475 (Table 3-4), and the maximum amount of 

$69,000.

Worksheet B. Includible Compensation for Your Most Recent Year of Service1

Note. Use this worksheet to figure includible compensation for your most recent year of service.

1. Enter your includible wages from the employer maintaining your 403(b) account for your most 

recent year of service .............................................................. 1. $66,000

2. Enter elective deferrals excluded from your gross income for your most recent year of 

service2......................................................................... 2. 4,4753

3. Enter amounts contributed or deferred by your employer under a cafeteria plan for your most 

recent year of service .............................................................. 3. -0-

4. Enter amounts contributed or deferred by your employer according to your election to your 457 

account (a nonqualified plan of a state or local government or of a tax-exempt organization) for 

your most recent year of service ..................................................... 4. -0-

5. Enter pre-tax contributions (employer's contributions made on your behalf according to your 

election) to a qualified transportation fringe benefit plan for your most recent year of 

service .......................................................................... 5. -0-

6. Enter your foreign earned income exclusion for your most recent year of service ............. 6. -0-

7. Add lines 1, 2, 3, 4, 5, and 6 ........................................................ 7. 70,475

8. Enter the cost of incidental life insurance that is part of your annuity contract for your most recent 

year of service ................................................................... 8. -0-

9. Enter compensation that was both:

• Earned during your most recent year of service, and

• Earned while your employer wasn’t qualified to maintain a 403(b) plan ......... ......... 9. -0-

10. Add lines 8 and 9 ................................................................. 10. -0-

11. Subtract line 10 from line 7. This is your includible compensation for your most recent year of 

service .......................................................................... 11. 70,475

1

 Use estimated amounts if figuring includible compensation before the end of the year.

2

 Elective deferrals made to a designated Roth account aren’t excluded from your gross income and shouldn’t be included on this line.

3

 $4,475 ($2,000 + $1,650 + $825).

Table 3-4. 

10 Chapter 3 Limit on Annual Additions Publication 571 (1-2024)
4.

Limit on Elective 

Deferrals

The second and final component of MAC is the limit on 

elective deferrals. This is a limit on the amount of contributions that can be made to your account through a salary 

reduction agreement.

A salary reduction agreement is an agreement between 

you and your employer that allows for a portion of your 

compensation to be directly invested in a 403(b) account 

on your behalf. You can enter into more than one salary 

reduction agreement during a year.

More than one 403(b) account. If, for any year, 

elective deferrals are contributed to more than 

one 403(b) account for you (whether or not with 

the same employer), you must combine all the elective deferrals to determine whether the total is more than the limit 

for that year.

403(b) plan and another retirement plan. If, during the 

year, contributions in the form of elective deferrals are 

made to other retirement plans on your behalf, you must 

combine all of the elective deferrals to determine if they 

are more than your limit on elective deferrals. The limit on 

elective deferrals applies to amounts contributed to:

• 401(k) plans, to the extent excluded from income;

• Roth contribution programs;

• Section 501(c)(18) plans, to the extent excluded from 

income;

• Savings incentive match plan for employees (SIMPLE) 

plans;

• Salary reduction simplified employee pension (SARSEP) plans; and

• All 403(b) plans.

Roth contribution program. Your 403(b) plan may allow 

you to designate all or a portion of your elective deferrals 

as Roth contributions. Elective deferrals designated as 

Roth contributions must be maintained in a separate Roth 

account and aren’t excludable from your gross income.

The maximum amount of contributions allowed under a 

Roth contribution program is your limit on elective deferrals, less your elective deferrals not designated as Roth 

contributions. For more information on the Roth contribution program, see Pub. 560, Retirement Plans for Small 

Business.

Excess elective deferrals. If the amount contributed 

is more than the allowable limit, you must include the excess that isn’t a Roth contribution in your gross income for 

the year contributed.

CAUTION

!

General Limit

Under the general limit on elective deferrals, the most that 

can be contributed to your 403(b) account through a salary reduction agreement is $22,500 for 2023 and $23,000 

for 2024. This limit applies without regard to community 

property laws.

15-Year Rule

If you have at least 15 years of service with an educational 

organization (such as a public or private school), hospital, 

home health service agency, health and welfare service 

agency, church, or convention or association of churches 

(or associated organization) and it is allowed by the terms 

of the plan document, the limit on elective deferrals to your 

403(b) account is increased by the least of:

1. $3,000;

2. $15,000, reduced by the sum of:

a. The additional pre-tax elective deferrals made in 

prior years because of this rule, plus

b. The aggregate amount of designated Roth contributions permitted for prior years because of this 

rule; or

3. $5,000 times the number of your years of service for 

the organization, minus the total elective deferrals 

made by your employer on your behalf for earlier 

years.

If you qualify for the 15-year rule (sometimes referred to 

as the “special section 403(b) catch-up” or the 

“years-of-service catch-up”), your elective deferrals under 

this limit can be as high as $25,500 for 2023 and $26,000 

for 2024.

To determine whether you have 15 years of service with 

your employer, see Years of Service, next.

Years of Service

To determine if you are eligible for the increased limit on 

elective deferrals, you will first need to figure your years of 

service. How you figure your years of service depends on 

whether you were a full-time or a part-time employee, 

whether you worked for the full year or only part of the 

year, and whether you have worked for your employer for 

an entire year.

You must figure years of service for each year during 

which you worked for the employer who is maintaining 

your 403(b) account.

If more than one employer maintains a 403(b) account 

for you in the same year, you must figure years of service 

separately for each employer.

For purposes of the 15-year rule, years of service are 

figured through the year for which the calculation is being 

Publication 571 (1-2024) Chapter 4 Limit on Elective Deferrals 11
made. For example, to determine the limit for 2022, you 

count years of service through 2023.

Definition

Your years of service are the total number of years you 

have worked as a full-time employee for the employer 

maintaining your 403(b) account as of the end of the year.

Figuring Your Years of Service

Take the following rules into account when figuring your 

years of service.

Status of employer. Your years of service include only 

periods during which your employer was an eligible employer. Your plan administrator can tell you whether or not 

your employer was qualified during all your periods of 

service.

Service with one employer. Generally, you can’t count 

service for any employer other than the one who maintains 

your 403(b) account.

Church employee. If you are a church employee, treat 

all of your years of service with related church organizations as years of service with the same employer. For 

more information about church employees, see chapter 5.

Self-employed ministers. If you are a self-employed 

minister, your years of service include full and part years 

in which you have been treated as employed by a tax-exempt organization that is an eligible employer.

Total years of service. When figuring prior years of 

service, figure each year individually and then add the individual years of service to determine your total years of 

service.

Example. The annual work period for full-time teachers employed by ABC Public Schools is September 

through December and February through May. A teacher 

began working with ABC Public Schools in September 

2019. The teacher has always worked full-time for each 

annual work period. At the end of 2023, the teacher had 

4.5 years of service with ABC Public Schools, as shown in 

Table 4-1.

Teacher's Years of Service

Note. This table shows how the teacher figures the years 

of service, as explained in the previous example.

Table 4-1. 

Year Period Worked Portion of Work 

Period Years of Service

2019 Sept.–Dec. 0.5 year 0.5 year

2020

Feb.–May 0.5 year

1 year

Sept.–Dec. 0.5 year

2021

Feb.–May 0.5 year

1 year

Sept.–Dec. 0.5 year

2022

Feb.–May 0.5 year

1 year

Sept.–Dec. 0.5 year

2023

Feb.–May 0.5 year

1 year

Sept.–Dec. 0.5 year

Total years of service 4.5 years

Full-time or part-time. To figure your years of service, 

you must analyze each year individually and determine 

whether you worked full-time for the full year or something 

other than full-time. When determining whether you 

worked full-time or something other than full-time, use 

your employer's annual work period as the standard.

Employer's annual work period. Your employer's annual work period is the usual amount of time an individual 

working full-time in a specific position is required to work. 

Generally, this period of time is expressed in days, weeks, 

months, or semesters, and can span 2 calendar years.

Note. You can’t accumulate more than 1 year of service in a 12-month period.

Example. All full-time teachers at ABC Public Schools 

are required to work both the September through December semester and the February through May semester. 

Therefore, the annual work period for full-time teachers 

employed by ABC Public Schools is September through 

December and February through May. Teachers at ABC 

Public Schools who work both semesters in the same calendar year are considered working a full year of service in 

that calendar year.

Full-Time Employee for the Full Year

Count each full year during which you were employed 

full-time as 1 year of service. In determining whether you 

were employed full-time, compare the amount of work you 

were required to perform with the amount of work normally 

required of others who held the same position with the 

same employer and who generally received most of their 

pay from the position.

How to compare. You can use any method that reasonably and accurately reflects the amount of work required. 

For example, if you are a teacher, you can use the number 

of hours of classroom instruction as a measure of the 

amount of work required.

12 Chapter 4 Limit on Elective Deferrals Publication 571 (1-2024)
In determining whether positions with the same employer are the same, consider all of the facts and circumstances concerning the positions, including the work performed, the methods by which pay is determined, and the 

descriptions (or titles) of the positions.

Example. An assistant professor employed in the English department of a university will be considered a 

full-time employee if the amount of work that an assistant 

professor is required to perform is the same as the amount 

of work normally required of assistant professors of English at that university who get most of their pay from that 

position.

If no one else works for your employer in the same position, compare your work with the work normally required of 

others who held the same position with similar employers 

or similar positions with your employer.

Full year of service. A full year of service for a particular 

position means the usual annual work period of anyone 

employed full-time in that general type of work at that 

place of employment.

Example. If a doctor works for a hospital 12 months of 

a year except for a 1-month vacation, the doctor will be 

considered as employed for a full year if the other doctors 

at that hospital also work 11 months of the year with a 

1-month vacation. Similarly, if the usual annual work period at a university consists of the fall and spring semesters, an instructor at that university who teaches these semesters will be considered as working a full year.

Other Than Full-Time for the

Full Year

If, during any year, you were employed full-time for only 

part of your employer's annual work period, part-time for 

the entire annual work period, or part-time for only part of 

the work period, your year of service for that year is a fraction of your employer's annual work period.

Full-time for part of the year. If, during a year, you were 

employed full-time for only part of your employer's annual 

work period, figure the fraction for that year as follows.

• The numerator (top number) is the number of weeks, 

months, or semesters you were a full-time employee.

• The denominator (bottom number) is the number of 

weeks, months, or semesters considered the normal 

annual work period for the position.

Example. An instructor was employed full-time by a local college for the 4 months of the 2023 spring semester 

(February 2023 through May 2023). The annual work period for the college is 8 months (February through May 

and July through October). Given these facts, the instructor was employed full-time for part of the annual work period and provided 1/2 of a year of service. The instructor’s 

years of service computation for 2023 is as follows.

Number of months worked

=

4

=

1

Number of months in annual work 

period

8 2

Part-time for the full year. If, during a year, you were 

employed part-time for the employer's entire annual work 

period, you figure the fraction for that year as follows.

• The numerator (top number) is the number of hours or 

days you worked.

• The denominator (bottom number) is the number of 

hours or days normally required of someone holding 

the same position who works full-time.

Example. Alex teaches one course at a local medical 

school 3 hours per week for two semesters. Other faculty 

members at the same school teach 9 hours per week for 

two semesters. The annual work period of the medical 

school is two semesters. An instructor teaching 9 hours a 

week for two semesters is considered a full-time employee. Given these facts, Alex has worked part-time for a 

full annual work period. Alex has completed 1/3 of a year of 

service, figured as shown below.

Number of hours worked per week

=

3

=

1

Number of hours per week considered 

full-time

9 3

Part-time for part of the year. If, during any year, you 

were employed part-time for only part of your employer's 

annual work period, you figure your fraction for that year 

by multiplying two fractions.

Figure the first fraction as though you had worked 

full-time for part of the annual work period. The fraction is 

as follows.

• The numerator (top number) is the number of weeks, 

months, or semesters you were a full-time employee.

• The denominator (bottom number) is the number of 

weeks, months, or semesters considered the normal 

annual work period for the position.

Figure the second fraction as though you had worked 

part-time for the entire annual work period. The fraction is 

as follows.

• The numerator (top number) is the number of hours or 

days you worked.

• The denominator (bottom number) is the number of 

hours or days normally required of someone holding 

the same position who works full-time.

Once you have figured these two fractions, multiply 

them together to determine the fraction representing your 

partial year of service for the year.

Example. An attorney teaches a course 3 hours per 

week for 1 semester at a law school. The annual work period for teachers at the school is 2 semesters. All full-time 

instructors at the school are required to teach 12 hours 

per week. Based on these facts, the attorney is employed 

part-time for part of the annual work period. The attorney’s 

Publication 571 (1-2024) Chapter 4 Limit on Elective Deferrals 13
year of service for this year is determined by multiplying 

two fractions. The computation is as follows.

Attorney’s first fraction

Number of semesters worked

=

1

Number of semesters in annual work period 2

Attorney's second fraction

Number of hours worked per week

=

3

=

1

Number of hours per week considered 

full-time

12 4

The attorney would multiply these fractions to obtain 

the fractional year of service.

1

x

1

=

1

2 4 8

Figuring the Limit on Elective 

Deferrals

You can use Part II of Worksheet 1 in chapter 9 to figure 

the limit on elective deferrals.

Example

Max has figured the limit on annual additions. The only 

other component needed before Max can determine its 

MAC for 2024 is the limit on elective deferrals.

Figuring Max's limit on elective deferrals. Max has 

been employed with the current employer for less than 15 

years. Max isn’t eligible for the special 15-year increase. 

Therefore, the limit on elective deferrals for 2024 is 

$23,000, as shown in Table 4-2.

Max's employer won’t make any nonelective contributions to the 403(b) account and Max won’t make any after-tax contributions. Additionally, Max's employer doesn’t 

offer a Roth contribution program.

Figuring Max's MAC

Max has determined that the limit on annual additions for 

2024 is $69,000 and the limit on elective deferrals is 

$23,000. Because elective deferrals are the only contributions made to Max's account, the maximum amount that 

can be contributed to a 403(b) account on Max's behalf in 

2024 is $23,000, the lesser of both limits.

14 Chapter 4 Limit on Elective Deferrals Publication 571 (1-2024)
Worksheet 1. Maximum Amount Contributable (MAC)

Note. Use this worksheet to figure your MAC.

Table 4-2.

Part I. Limit on Annual Additions

 1. Enter your includible compensation for your most recent year of service .................. 1. $70,475

 2. Maximum:

• For 2023, enter $66,000.

• For 2024, enter $69,000 ........................ ........................ 2. 69,000

 3. Enter the lesser of line 1 or line 2. This is your limit on annual additions ................... 3. 69,000

Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 

on line 18. 

Part II. Limit on Elective Deferrals

 4. Maximum contribution:

• For 2023, enter $22,500.

• For 2024, enter $23,000 ........................ ........................ 4. 23,000

Note. If you have at least 15 years of service with a qualifying organization, complete lines 5 

through 17. If not, enter zero (-0-) on line 16 and go to line 17.

 5. Amount per year of service .................................................. 5. 5,000

 6. Enter your years of service .................................................. 6.

 7. Multiply line 5 by line 6 ..................................................... 7.

 8. Enter the total of all elective deferrals made for you by the qualifying organization for prior 

years ................................................................. 8.

 9. Subtract line 8 from line 7. If zero or less, enter zero (-0-) ............................. 9. -0-

10. Maximum increase in limit for long service ....................................... 10. 15,000

11. Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year 

rule .................................................................. 11.

12. Enter the aggregate amount of all designated Roth contributions permitted for prior years under 

the 15-year rule .......................................................... 12.

13. Add lines 11 and 12 ....................................................... 13.

14. Subtract line 13 from line 10 ................................................. 14.

15. Maximum additional contributions ............................................. 15. 3,000

16. Enter the least of line 9, 14, or 15. This is your increase in the limit for long service ........... 16. -0-

17. Add lines 4 and 16. This is your limit on elective deferrals ............................. 17. 23,000

Part III. Maximum Amount Contributable

18. • If you had only nonelective contributions, enter the amount from line 3. This is your MAC.

• If you had only elective deferrals, enter the lesser of line 3 or line 17. This is your MAC.

• If you had both elective deferrals and nonelective contributions, enter the amount from line 3. 

This is your MAC. (Use the amount on line 17 to determine if you have excess elective 

deferrals as explained in chapter 7.) .................... .................... 18. 23,000

Publication 571 (1-2024) Chapter 4 Limit on Elective Deferrals 15
5.

Ministers and Church 

Employees

Self-employed ministers and church employees who participate in 403(b) plans generally follow the same rules as 

other 403(b) plan participants.

This means that if you are a self-employed minister or a 

church employee, your MAC is generally the lesser of:

• Your limit on annual additions, or

• Your limit on elective deferrals.

For most ministers and church employees, the limit on annual additions is figured without any changes. This means 

that if you are a minister or church employee, your limit on 

annual additions is generally the lesser of:

• $66,000 for 2023 and $69,000 for 2024, or

• Your includible compensation for your most recent 

year of service.

Although, in general, the same limit applies, church employees can choose an alternative limit and there are 

changes in how church employees, foreign missionaries, 

and self-employed ministers figure includible compensation for the most recent year of service. This chapter will 

explain the alternative limit and the changes.

Who is a church employee? A church employee is anyone who is an employee of a church or a convention or association of churches, including an employee of a tax-exempt organization controlled by or associated with a 

church or a convention or association of churches.

Alternative Limit for Church 

Employees

If you are a church employee, you can choose to use 

$10,000 a year as your limit on annual additions, even if 

your annual additions figured under the general rule are 

less.

Total contributions over your lifetime under this choice 

can’t be more than $40,000.

Changes to Includible 

Compensation for Most Recent 

Year of Service

There are two types of changes in determining includible 

compensation for the most recent year of service. They 

are:

• Changes in how the includible compensation of foreign missionaries and self-employed ministers is figured, and

• A change to the years that are counted when figuring 

the most recent year of service for church employees 

and self-employed ministers.

Changes to Includible Compensation

Includible compensation is figured differently for foreign 

missionaries and self-employed ministers.

Foreign missionary. If you are a foreign missionary, your 

includible compensation includes foreign earned income 

that may otherwise be excludable from your gross income 

under section 911.

If you are a foreign missionary, and your adjusted gross 

income is $17,000 or less, contributions to your 403(b) account won’t be treated as exceeding the limit on annual 

additions if the contributions aren’t in excess of $3,000.

You are a foreign missionary if you are either a layperson or a duly ordained, commissioned, or licensed minister of a church and you meet both of the following requirements.

• You are an employee of a church or convention or association of churches.

• You are performing services for the church outside the 

United States.

Self-employed minister. If you are a self-employed minister, you are treated as an employee of a tax-exempt organization that is an eligible employer. Your includible 

compensation is your net earnings from your ministry minus the contributions made to the retirement plan on your 

behalf and the deductible portion of your self-employment 

tax.

Changes to Years of Service

Generally, only service with the employer who maintains 

your 403(b) account can be counted when figuring your 

limit on annual additions.

Church employee. If you are a church employee, treat all 

of your years of service as an employee of a church or a 

convention or association of churches as years of service 

with one employer.

16 Chapter 5 Ministers and Church Employees Publication 571 (1-2024)
Self-employed minister. If you are a self-employed minister, your years of service include full and part years during which you were self-employed.

6.

Catch-up Contributions

The most that can be contributed to your 403(b) account 

is the lesser of your limit on annual additions or your limit 

on elective deferrals.

If you will be age 50 or older by the end of the year, you 

may also be able to make additional catch-up contributions. These additional contributions can’t be made with 

after-tax employee contributions.

You are eligible to make catch-up contributions if:

• You will have reached age 50 by the end of the year,

• Your employer's plan document allows for catch-up 

contributions, and

• The maximum amount of elective deferrals that can be 

made to your 403(b) account have been made for the 

plan year.

The maximum amount of catch-up contributions is the 

lesser of:

• $7,500 for 2023 and 2024; or

• The excess of your compensation for the year, over 

the elective deferrals that aren’t catch-up contributions.

Figuring catch-up contributions. When figuring allowable catch-up contributions, combine all catch-up contributions made by your employer on your behalf to the following plans.

• Qualified retirement plans. (To determine if your plan 

is a qualified plan, ask your plan administrator.)

• 403(b) plans.

• SARSEP plans.

• SIMPLE plans.

The total amount of the catch-up contributions on your 

behalf to all plans maintained by your employer can’t be 

more than the annual limit. The limit is $7,500 for 2023 

and 2024.

If you are eligible for both the 15-year rule increase in elective deferrals and the age 50 

catch-up, allocate amounts first under the 15-year 

rule and next as an age 50 catch-up.

CAUTION

!

Catch-up contributions aren’t counted against 

your MAC. Therefore, the maximum amount that 

you are allowed to have contributed to your 403(b) 

account is your MAC plus your allowable catch-up contributions.

You can use Worksheet C in chapter 9 to figure your limit 

on catch-up contributions.

7.

Excess Contributions

If your actual contributions (not including catch-up contributions) are greater than your MAC, you have an excess 

contribution. Excess contributions can result in income 

tax, additional taxes, and penalties. The effect of excess 

contributions depends on the type of excess contribution. 

This chapter discusses excess contributions to your 

403(b) account.

How Do I Know if I Have 

Excess Contributions?

At the end of the year or the beginning of the next year, 

you should refigure your MAC based on your actual compensation and actual contributions made to your account.

If the actual contributions (not including catch-up contributions) to your account are greater than your MAC, you 

have excess contributions. If, at any time during the year, 

your employment status or your compensation changes, 

you should refigure your MAC using a revised estimate of 

compensation to prevent excess contributions.

What Happens if I Have Excess 

Contributions?

Certain excess contributions in a 403(b) account can be 

corrected. The effect of an excess 403(b) contribution will 

depend on the type of excess contribution.

Types of excess contributions. If, after checking your 

actual contributions, you determine that you have an excess, the first thing is to identify the type of excess that 

you have. Excess contributions to a 403(b) account are 

categorized as either an:

• Excess annual addition, or

• Excess elective deferral.

TIP

Publication 571 (1-2024) Chapter 6 Catch-up Contributions 17
Excess Annual Addition

An excess annual addition is a contribution (not including 

catch-up contributions) that is more than your limit on annual additions. To determine your limit on annual additions, see chapter 3 (chapter 5 for ministers or church employees).

In the year that your contributions are more than your 

limit on annual additions, the excess amount will be included in your income.

Excise Tax

If your 403(b) account invests in mutual funds, and you exceed your limit on annual additions, you may be subject to 

a 6% excise tax on the excess contribution. The excise tax 

doesn’t apply to funds in an annuity account or to excess 

deferrals.

You must pay the excise tax each year in which there 

are excess contributions in your account. Excess contributions can be corrected by contributing less than the applicable limit in later years or by making permissible distributions. See chapter 8 for a discussion on permissible 

distributions.

You can’t deduct the excise tax.

Reporting requirement. You must file Form 5330 if there 

has been an excess contribution to a custodial account 

and that excess hasn’t been corrected.

Excess Elective Deferral

An excess elective deferral is the amount that is more than 

your limit on elective deferrals. To determine your limit on 

elective deferrals, see chapter 4.

Your employer's 403(b) plan may contain language permitting it to distribute excess deferrals. If so, it may require 

that in order to get a distribution of excess deferrals, you 

either notify the plan of the amount of excess deferrals or 

designate a distribution as an excess deferral. The plan 

may require that the notification or designation be in writing and may require that you certify or otherwise establish 

that the designated amount is an excess deferral. A plan 

isn’t required to permit distribution of excess deferrals.

Correction of excess deferrals during year. If you 

have excess deferrals for a year, a corrective distribution 

may be made only if both of the following conditions are 

satisfied.

• The plan and either you or your employer designate 

the distribution as an excess deferral to the extent you 

have excess deferrals for the year.

• The correcting distribution is made after the date on 

which the excess deferral was made.

Correction of excess deferrals after the year. If you 

have excess deferrals for a year, you may receive a correcting distribution of the excess deferral no later than 

April 15 of the following year. The plan can distribute the 

excess deferral (and any income allocable to the excess) 

no later than April 15 of the year following the year the excess deferral was made.

Note. When April 15 falls on a Saturday, Sunday, or legal holiday, a return is considered timely filed if filed on the 

next succeeding day that isn’t a Saturday, Sunday, or legal 

holiday.

Tax treatment of excess deferrals not attributable to 

Roth contributions. If the excess deferral is distributed 

by April 15, it is included in your income in the year contributed and the earnings on the excess deferral will be 

taxed in the year distributed.

Note. When April 15 falls on a Saturday, Sunday, or legal holiday, a return is considered timely filed if filed on the 

next succeeding day that isn’t a Saturday, Sunday, or legal 

holiday.

Tax treatment of excess deferrals attributable to Roth 

contributions. For these rules, see Regulations section 

1.402(g)-1(e).

8.

Distributions and 

Rollovers

Distributions

Permissible distributions. Generally, a distribution can’t 

be made from a 403(b) account until the employee:

• Reaches age 591/2;

• Has a severance from employment;

• Dies;

• Becomes disabled;

• In the case of elective deferrals, encounters financial 

hardship;

• Has a qualified reservist distribution;

• Has a qualified birth or adoption distribution;

• Has certain distributions of lifetime income investments;

• Has an emergency personal expenses distribution;

• Has a domestic abuse distribution; or

• Has a qualified disaster recovery distribution.

18 Chapter 8 Distributions and Rollovers Publication 571 (1-2024)
In most cases, the payments you receive or that are 

made available to you under your 403(b) account are taxable in full as ordinary income. In general, the same tax 

rules apply to distributions from 403(b) plans that apply to 

distributions from other retirement plans. These rules are 

explained in Pub. 575. Pub. 575 also discusses the additional tax on early distributions from retirement plans.

Note. You may choose to have qualified COVID-19 distributions (as defined earlier under Reminders) included in 

income in equal amounts over 3 years.

Retired public safety officers. If you are an eligible retired public safety officer, you can exclude from your gross 

income distributions of up to $3,000 made from your 

403(b) plan that are used to pay the premiums for coverage by an accident or health plan, or a long-term care insurance contract. The premiums can be for you, your 

spouse, or your dependents. The distribution can be 

made directly from the plan to the provider of the accident 

or health plan or long-term care insurance contract, or the 

distribution can be made to you to pay to the provider of 

the accident or health plan or long-term care insurance 

contract.

A public safety officer is a law enforcement officer, 

fire fighter, chaplain, or member of a rescue squad or ambulance crew.

For additional information, see Pub. 575.

Distribution for active reservist. The 10% additional 

tax for early withdrawals won’t apply to a qualified reservist distribution attributable to elective deferrals from a 

403(b) plan. A qualified reservist distribution is a distribution that is made:

• To an individual who is a reservist or national guardsman and who was ordered or called to active duty for 

a period in excess of 179 days or for an indefinite period, and

• During the period beginning on the date of the order or 

call to duty and ending at the close of the active duty 

period.

Minimum Required Distributions

You must receive all, or at least a certain minimum, of your 

interest accruing after 1986 in the 403(b) plan by April 1 of 

the calendar year following the later of the calendar year in 

which you become age 73 (if you attain age 72 after December 31, 2022), or the calendar year in which you retire.

Check with your employer, plan administrator, or 

provider to find out whether this rule also applies 

to pre-1987 accruals. If not, a minimum amount of 

these accruals must begin to be distributed by the later of 

the end of the calendar year in which you reach age 75 or 

April 1 of the calendar year following retirement. For each 

year thereafter, the minimum distribution must be made by 

the last day of the year. If you don’t receive the required 

minimum distribution, you are subject to a nondeductible 

TIP

25% (or 10% if timely corrected) excise tax on the difference between the required minimum distribution and the 

amount actually distributed.

No Special 10-Year Tax Option

A distribution from a 403(b) plan doesn’t qualify as a 

lump-sum distribution. This means you can’t use the special 10-year tax option to figure the taxable portion of a 

403(b) distribution. For more information, see Pub. 575.

Transfer of Interest in 403(b) 

Contract

Contract exchanges. If you transfer all or part of your interest from a 403(b) contract to another 403(b) contract 

(held in the same plan), the transfer is tax free, and is referred to as a contract exchange. This was previously 

known as a 90-24 transfer. A contract exchange is similar 

to a 90-24 transfer with one major difference. Previously, 

you were able to accomplish the transfer without your employer’s involvement. After September 24, 2007, all such 

transfers are accomplished through a contract exchange 

requiring your employer’s involvement. In addition, the 

plan must provide for the exchange and the transferred interest must be subject to the same or stricter distribution 

restrictions. Finally, your accumulated benefit after the exchange must be equal to what it was before the exchange.

Transfers that don’t satisfy this rule are plan distributions and are generally taxable as ordinary income. 

Plan-to-plan transfers. You may also transfer part or all 

of your interest from a 403(b) plan to another 403(b) plan if 

you are an employee of (or were formerly employed by) 

the employer of the plan to which you would like to transfer. Both the initial plan and the receiving plan must provide for transfers. Your accumulated benefit after the 

transfer must be at least equal to what it was before the 

transfer. The new plan’s restrictions on distributions must 

be the same or stricter than those of the original plan.

Tax-free transfers for certain cash distributions. A 

tax-free transfer may also apply to a cash distribution of 

your 403(b) account from an insurance company that is 

subject to a rehabilitation, conservatorship, insolvency, or 

similar state proceeding. To receive tax-free treatment, 

you must do all of the following.

• Withdraw all the cash to which you are entitled in full 

settlement of your contract rights or, if less, the maximum permitted by the state.

• Reinvest the cash distribution in a single policy or contract issued by another insurance company or in a single custodial account subject to the same or stricter 

distribution restrictions as the original contract not 

later than 60 days after you receive the cash distribution.

• Assign all future distribution rights to the new contract 

or account for investment in that contract or account if 

Publication 571 (1-2024) Chapter 8 Distributions and Rollovers 19
you received an amount that is less than what you are 

entitled to because of state restrictions.

In addition to the preceding requirements, you must 

provide the new insurer with a written statement containing all of the following information.

• The gross amount of cash distributed under the old 

contract.

• The amount of cash reinvested in the new contract.

• Your investment in the old contract on the date you receive your first cash distribution.

Also, you must attach the following items to your timely 

filed income tax return in the year you receive the first distribution of cash.

1. A copy of the statement you gave the new insurer.

2. A statement that includes:

a. The words ELECTION UNDER REV. PROC. 

92-44,

b. The name of the company that issued the new 

contract, and

c. The new policy number.

Direct trustee-to-trustee transfer. If you make a direct 

trustee-to-trustee transfer from your governmental 403(b) 

account to a defined benefit governmental plan, it may not 

be includible in gross income.

The transfer amount isn’t includible in gross income if it 

is made to:

• Purchase permissive service credits; or

• Repay contributions and earnings that were previously 

refunded under a forfeiture of service credit under the 

plan, or under another plan maintained by a state or 

local government employer within the same state.

After-tax contributions. For distributions beginning 

after December 31, 2006, after-tax contributions can be 

rolled over between a 403(b) plan and a defined benefit 

plan, an IRA, or a defined contribution plan. If the rollover 

is to or from a 403(b) plan, it must occur through a direct 

trustee-to-trustee transfer.

Permissive service credit. A permissive service 

credit is credit for a period of service recognized by a defined benefit governmental plan only if you voluntarily contribute to the plan an amount that doesn’t exceed the 

amount necessary to fund the benefit attributable to the 

period of service and the amount contributed is in addition 

to the regular employee contribution, if any, under the 

plan.

A permissive service credit may also include service 

credit for up to 5 years where there is no performance of 

service, or service credited to provide an increased benefit for service credit which a participant is receiving under 

the plan.

Check with your plan administrator as to the type and 

extent of service that may be purchased by this transfer.

Tax-Free Rollovers

You can generally roll over tax free all or any part of a distribution from a 403(b) plan to a traditional IRA or a 

non-Roth eligible retirement plan, except for any nonqualifying distributions, described later. You may also roll over 

any part of a distribution from a 403(b) plan by converting 

it through a direct rollover, described below, to a Roth IRA. 

Conversion amounts are generally includible in your taxable income in the year of the distribution from your 403(b) 

account. See Pub. 590-A for more information about conversion into a Roth IRA.

Note. A participant is required to roll over distribution 

amounts received within 60 calendar days in order for the 

amount to be treated as nontaxable. Distribution amounts 

that are rolled over within the 60 days aren’t subject to the 

10% additional tax on early distributions.

Note. The repayment of a qualified birth or adoption 

distribution, emergency personal expense distribution, or 

a distribution to a domestic abuse victim from an applicable eligible retirement plan is treated as a direct transfer of 

the distribution to the plan within 60 days of the distribution.

Rollovers to and from 403(b) plans. You can generally 

roll over tax free all or any part of a distribution from an eligible retirement plan to a 403(b) plan. Beginning January 

1, 2008, distributions from tax-qualified retirement plans 

and tax-sheltered annuities can be converted by making a 

direct rollover into a Roth IRA subject to the restrictions 

that currently apply to rollovers from a traditional IRA into a 

Roth IRA. Converted amounts are generally includible in 

your taxable income in the year of the distribution from 

your 403(b) account. See Pub. 590-A for more information 

on conversion into a Roth IRA.

If a distribution includes both pre-tax contributions and 

after-tax contributions, the portion of the distribution that is 

rolled over is treated as consisting first of pre-tax amounts 

(contributions and earnings that would be includible in income if no rollover occurred). This means that if you roll 

over an amount that is at least as much as the pre-tax portion of the distribution, you don’t have to include any of the 

distribution in income.

For more information on rollovers and eligible retirement plans, see Pub. 575.

If you roll over money or other property from a 

403(b) plan to an eligible retirement plan, see 

Pub. 575 for information about possible effects on 

later distributions from the eligible retirement plan.

Hardship exception to rollover rules. The IRS may 

waive the 60-day rollover period if the failure to waive such 

requirement would be against equity or good conscience, 

including cases of casualty, disaster, or other events beyond the reasonable control of an individual.

CAUTION

!

20 Chapter 8 Distributions and Rollovers Publication 571 (1-2024)
Ways to get a waiver of the 60-day rollover requirement. There are three ways to obtain a waiver of the 

60-day rollover requirement.

• You qualify for an automatic waiver.

• You self-certify that you met the requirements of a 

waiver.

• You request and receive a private letter ruling granting 

a waiver.

How do you qualify for an automatic waiver? You 

qualify for an automatic waiver if all of the following apply.

• The financial institution receives the funds on your behalf before the end of the 60-day rollover period.

• You followed all of the procedures set by the financial 

institution for depositing the funds into an IRA or other 

eligible retirement plan within the 60-day rollover period (including giving instructions to deposit the funds 

into a plan or IRA).

• The funds are not deposited into a plan or IRA within 

the 60-day rollover period solely because of an error 

on the part of the financial institution.

• The funds are deposited into a plan or IRA within 1 

year from the beginning of the 60-day rollover period.

• It would have been a valid rollover if the financial institution had deposited the funds as instructed.

If you do not qualify for an automatic waiver, you can use 

the self-certification procedure to make a late rollover contribution or you can apply to the IRS for a waiver of the 

60-day rollover requirement.

How do you self-certify that you qualify for a 

waiver? Based on Revenue Procedure 2016-47, 2016-37 

I.R.B. 346, available at IRS.gov/irb/2016-37_IRB/

ar09.html, you may make a written certification to a plan 

administrator or an IRA trustee that you missed the 60-day 

rollover contribution deadline because of one or more of 

the 11 reasons listed in Revenue Procedure 2016-47. A 

plan administrator or an IRA trustee may rely on the certification in accepting and reporting receipt of the rollover 

contribution. You may make the certification by using the 

model letter in the appendix to the revenue procedure or 

by using a letter that is substantially similar. There is no 

IRS fee for self certification. A copy of the certification 

should be kept in your files and be available if requested 

on audit.

For additional information on rollovers, see Pub. 590-A.

How do you apply for a waiver ruling and what is 

the fee? You can request a ruling according to the procedures outlined in Revenue Procedure 2003-16, as modified by Revenue Procedure 2016-47 and Revenue Procedure 2020-46; and Revenue Procedure 2024-4. See 

Appendix A for the applicable user fee.

How does the IRS determine whether to grant a 

waiver in a private letter ruling? In determining 

whether to issue a favorable letter ruling granting a waiver, 

the IRS will consider all of the relevant facts and circumstances, including:

• Whether errors were made by the financial institution, 

that is, the plan administrator, or IRA trustee, issuer, or 

custodian;

• Whether you were unable to complete the rollover 

within the 60-day period due to death, disability, hospitalization, incarceration, serious illness, restrictions imposed by a foreign country, or postal error;

• Whether you used the amount distributed; and

• How much time has passed since the date of the distribution.

Note. The IRS can waive only the 60-day rollover requirement and not the other requirements for a valid rollover contribution.

For more information on waivers of the 60-day rollover 

requirement, go to IRS.gov/Retirement-Plans/RetirementPlans-FAQS-Relating-to-Waivers-of-the-60-Day-RolloverRequirement.

Eligible retirement plans. The following are considered eligible retirement plans.

• IRAs.

• Roth IRAs.

• 403(a) annuity plans.

• 403(b) plans.

• Government eligible 457 plans.

• Qualified retirement plans.

If the distribution is from a designated Roth account, then 

the only eligible retirement plan is another designated 

Roth account or a Roth IRA.

Nonqualifying distributions. You can’t roll over tax 

free:

• Minimum required distributions (generally required to 

begin at age 73 if you attain age 72 after December 

31, 2022);

• Substantially equal payments over your life or life expectancy;

• Substantially equal payments over the joint lives or life 

expectancies of your beneficiary and you;

• Substantially equal payments for a period of 10 years 

or more;

• Hardship distributions; or

• Corrective distributions of excess contributions or excess deferrals, and any income allocable to the excess, or excess annual additions and any allocable 

gains.

Rollover of nontaxable amounts. You may be able to 

roll over the nontaxable part of a distribution (such as your 

after-tax contributions) made to another eligible retirement 

plan, traditional IRA, or Roth IRA. The transfer must be 

made either through a direct rollover to an eligible plan 

Publication 571 (1-2024) Chapter 8 Distributions and Rollovers 21
that separately accounts for the taxable and nontaxable 

parts of the rollover or through a rollover to a traditional 

IRA or Roth IRA.

If you roll over only part of a distribution that includes 

both taxable and nontaxable amounts, the amount you roll 

over is treated as coming first from the taxable part of the 

distribution.

Direct rollovers of 403(b) plan distributions. You have 

the option of having your 403(b) plan make the rollover directly to a traditional IRA, Roth IRA, or new plan. Before 

you receive a distribution, your plan will give you information on this. It is generally to your advantage to choose this 

option because your plan won’t withhold tax on the distribution if you choose it.

Distribution received by you. If you receive a distribution that qualifies to be rolled over, you can roll over all or 

any part of the distribution. Generally, you will receive only 

80% of the distribution because 20% must be withheld. If 

you roll over only the 80% you receive, you must pay tax 

on the 20% you didn’t roll over. You can replace the 20% 

that was withheld with other money within the 60-day period to make a 100% rollover.

Voluntary deductible contributions. For tax years 

1982 through 1986, employees could make deductible 

contributions to a 403(b) plan under the IRA rules instead 

of deducting contributions to a traditional IRA.

If you made voluntary deductible contributions to a 

403(b) plan under these traditional IRA rules, the distribution of all or part of the accumulated deductible contributions may be rolled over if it otherwise qualifies as a distribution you can roll over. Accumulated deductible 

contributions are the deductible contributions:

• Plus

1. Income allocable to the contributions,

2. Gain allocable to the contributions, and

• Minus

1. Expenses and losses allocable to the contributions; and

2. Distributions from the contributions, income, or 

gain.

Excess employer contributions. The portion of a distribution from a 403(b) plan transferred to a traditional IRA 

that was previously included in income as excess employer contributions isn’t an eligible rollover distribution.

Its transfer doesn’t affect the rollover treatment of the 

eligible portion of the transferred amounts. However, the 

ineligible portion is subject to the traditional IRA contribution limits and may create an excess IRA contribution subject to a 6% excise tax. See chapter 1 of Pub. 590-A.

Qualified domestic relations order (QDRO). You may 

be able to roll over tax free all or any part of an eligible rollover distribution from a 403(b) plan that you receive under 

a QDRO. If you receive the interest in the 403(b) plan as 

an employee's spouse or former spouse under a QDRO, 

all of the rollover rules apply to you as if you were the employee. You can roll over your interest in the plan to a traditional IRA or another 403(b) plan. For more information on 

the treatment of an interest received under a QDRO, see 

Pub. 575.

Spouses of deceased employees. If you are the 

spouse of a deceased employee, you can roll over the 

qualifying distribution attributable to the employee. You 

can make the rollover to any eligible retirement plan.

After you roll money and other property over from a 

403(b) plan to an eligible retirement plan, and you take a 

distribution from that plan, you won’t be eligible to receive 

the capital gain treatment or the special averaging treatment for the distribution.

Second rollover. If you roll over a qualifying distribution to a traditional IRA, you can, if certain conditions are 

satisfied, later roll the distribution into another 403(b) plan. 

For more information, see IRA as a holding account (conduit IRA) for rollovers to other eligible plans in chapter 1 of 

Pub. 590-A.

Nonspouse beneficiary. A nonspouse beneficiary may 

make a direct rollover of a distribution from a 403(b) plan 

of a deceased participant if the rollover is a direct transfer 

to an inherited IRA established to receive the distribution. 

If the rollover is a direct trustee-to-trustee transfer to an 

IRA established to receive the distribution:

• The transfer will be treated as an eligible rollover distribution,

• The IRA will be considered an inherited account, and

• The required minimum distribution rules that apply in 

instances where the participant dies before the entire 

interest is distributed will apply to the transferred IRA.

For more information on IRAs, see Pubs. 590-A and 

590-B.

Frozen deposits. The 60-day period usually allowed for 

completing a rollover is extended for any time that the 

amount distributed is a frozen deposit in a financial institution. The 60-day period can’t end earlier than 10 days after the deposit ceases to be a frozen deposit.

A frozen deposit is any deposit that on any day during 

the 60-day period can’t be withdrawn because:

1. The financial institution is bankrupt or insolvent, or

2. The state where the institution is located has placed 

limits on withdrawals because one or more banks in 

the state are (or are about to be) bankrupt or insolvent.

Gift Tax

If, by choosing or not choosing an election, or option, you 

provide an annuity for your beneficiary at or after your 

death, you may have made a taxable gift equal to the 

value of the annuity.

22 Chapter 8 Distributions and Rollovers Publication 571 (1-2024)
Joint and survivor annuity. If the gift is an interest in a 

joint and survivor annuity where only you and your spouse 

have the right to receive payments, the gift will generally 

be treated as qualifying for the unlimited marital deduction.

More information. For information on the gift tax, see 

Pub. 559, Survivors, Executors, and Administrators.

9.

Worksheets

Chapter 2 introduced you to the term “maximum amount 

contributable” (MAC). Generally, your MAC is the lesser of 

your:

• Limit on annual additions (chapter 3), or

• Limit on elective deferrals (chapter 4).

The worksheets in this chapter can help you figure the 

cost of incidental life insurance, your includible compensation, your limit on annual additions, your limit on elective 

deferrals, your limit on catch-up contributions, and your 

MAC.

After completing the worksheets, you should 

maintain them with your 403(b) records for that 

year. Do not attach them to your tax return. At the 

end of the year or the beginning of the next year, you 

should compare your estimated compensation figures 

with your actual figures.

If your compensation is the same as, or more than, the 

projected amounts and the calculations are correct, then 

you should simply file these worksheets with your other 

tax records for the year.

If your compensation was lower than your estimated figures, you will need to check the amount contributed during 

the year to determine if contributions are more than your 

MAC.

When Should I Figure MAC?

At the beginning of each year, you should figure your MAC 

using a conservative estimate of your compensation. 

Should your income change during the year, you should 

refigure your MAC based on a revised conservative estimate. By doing this, you will be able to determine if contributions to your 403(b) account should be increased or decreased for the year.

Checking the Previous Year's 

Contributions

At the beginning of the following year, you should refigure 

your MAC based on your actual earned income.

At the end of the current year or the beginning of the 

next year, you should check your contributions to be sure 

you didn’t exceed your MAC. This means refiguring your 

limit based on your actual compensation figures for the 

year. This will allow you to determine if the amount contributed is more than the allowable amounts, and possibly 

avoid additional taxes.

Available Worksheets

The following worksheets have been provided to help you 

figure your MAC.

• Worksheet A. Cost of Incidental Life Insurance.

• Worksheet B. Includible Compensation for Your Most 

Recent Year of Service.

• Worksheet C. Limit on Catch-up Contributions.

• Worksheet 1. Maximum Amount Contributable (MAC).

Cost of Incidental Life Insurance

Note. Use this worksheet to figure the cost of incidental life insurance included in your annuity contract. 

This amount will be used to figure includible compensation for your most recent year of service.

1. Enter the value of the contract (amount payable upon your death) ......................... 1.

2. Enter the cash value in the contract at the end of the year ................................ 2.

3. Subtract line 2 from line 1. This is the value of your current life insurance protection ........... 3.

4. Enter your age on your birthday nearest the beginning of the policy year .................... 4.

5. Enter the 1-year term premium for $1,000 of life insurance based on your age. (From Figure 

3-1) ............................................................................ 5.

6. Divide line 3 by $1,000 ............................................................. 6.

7. Multiply line 6 by line 5. This is the cost of your incidental life insurance ..................... 7.

Worksheet A.

Publication 571 (1-2024) Chapter 9 Worksheets 23
Includible Compensation for Your Most Recent Year of Service1

Note. Use this worksheet to figure includible compensation for your most recent year of service.

 1. Enter your includible wages from the employer maintaining your 403(b) account for your most 

recent year of service ............................................................ 1.

 2. Enter elective deferrals excluded from your gross income for your most recent year of 

service2....................................................................... 2.

 3. Enter amounts contributed or deferred by your employer under a cafeteria plan for your most 

recent year of service ............................................................ 3.

 4. Enter amounts contributed or deferred by your employer according to your election to your 457 

account (a nonqualified plan of a state or local government or of a tax-exempt organization) for 

your most recent year of service ................................................... 4.

 5. Enter pre-tax contributions (employer's contributions made on your behalf according to your 

election) to a qualified transportation fringe benefit plan for your most recent year of 

service ........................................................................ 5.

 6. Enter your foreign earned income exclusion for your most recent year of service ........... 6.

 7. Add lines 1, 2, 3, 4, 5, and 6 ...................................................... 7.

 8. Enter the cost of incidental life insurance that is part of your annuity contract for your most 

recent year of service ........................................................... 8.

 9. Enter compensation that was both:

• Earned during your most recent year of service, and

• Earned while your employer wasn’t qualified to maintain a 403(b) plan ........ ........ 9.

10. Add lines 8 and 9 ............................................................... 10.

11. Subtract line 10 from line 7. This is your includible compensation for your most recent year of 

service ........................................................................ 11.

1

 Use estimated amounts if figuring includible compensation before the end of the year.

2

 Elective deferrals made to a designated Roth account aren’t excluded from your gross income and shouldn’t be included on this line.

Worksheet B. 

Limit on Catch-up Contributions

Note. If you will be age 50 or older by the end of the year, use this worksheet to figure your limit on 

catch-up contributions.

1. Maximum catch-up contributions .................................................... 1. $7,500

2. Enter your includible compensation for your most recent year of service .................... 2.

3. Enter your elective deferrals ........................................................ 3.

4. Subtract line 3 from line 2 .......................................................... 4.

5. Enter the lesser of line 1 or line 4. This is your limit on catch-up contributions ................ 5.

Worksheet C. 

24 Chapter 9 Worksheets Publication 571 (1-2024)
Maximum Amount Contributable (MAC)

Note. Use this worksheet to figure your MAC.

Worksheet 1.

Part I. Limit on Annual Additions

 1. Enter your includible compensation for your most recent year of service .................. 1.

 2. Maximum:1

• For 2023, enter $66,000.

• For 2024, enter $69,000 ........................ ........................ 2.

 3. Enter the lesser of line 1 or line 2. This is your limit on annual additions .................. 3.

Caution: If you had only nonelective contributions, skip Part II and enter the amount from line 3 

on line 18. 

Part II. Limit on Elective Deferrals

 4. Maximum contribution:

• For 2023, enter $22,500.

• For 2024, enter $23,000 ........................ ........................ 4.

Note. If you have at least 15 years of service with a qualifying organization, complete lines 5 

through 17. If not, enter zero (-0-) on line 16 and go to line 17.

 5. Amount per year of service ................................................. 5. $ 5,000

 6. Enter your years of service ................................................. 6.

 7. Multiply line 5 by line 6 .................................................... 7.

 8. Enter the total of all elective deferrals made for you by the qualifying organization for prior 

years ................................................................ 8.

 9. Subtract line 8 from line 7. If zero or less, enter zero (-0-) ............................ 9.

10. Maximum increase in limit for long service ...................................... 10. $15,000

11. Enter the total of additional pre-tax elective deferrals made in prior years under the 15-year 

rule .................................................................. 11.

12. Enter the aggregate amount of all designated Roth contributions permitted for prior years under 

the 15-year rule ......................................................... 12.

13. Add line 11 and line 12 .................................................... 13.

14. Subtract line 13 from line 10 ................................................ 14.

15. Maximum additional contributions ............................................ 15. $ 3,000

16. Enter the least of line 9, 14, or 15. This is your increase in the limit for long service .......... 16.

17. Add lines 4 and 16. This is your limit on elective deferrals ............................ 17.

Part III. Maximum Amount Contributable

18. • If you had only nonelective contributions, enter the amount from line 3. This is your MAC.

• If you had only elective deferrals, enter the lesser of line 3 or line 17. This is your MAC.

• If you had both elective deferrals and nonelective contributions, enter the amount from 

line 3. This is your MAC. (Use the amount on line 17 to determine if you have excess 

elective deferrals as explained in chapter 7.) ................. ................. 18.

1

 If you participate in a 403(b) plan and a qualified plan, you must combine contributions made to your 403(b) account with contributions to a 

qualified plan and simplified employee pension plans of all corporations, partnerships, and sole proprietorships in which you have more than 50% 

control. You must also combine the contributions made to all 403(b) accounts on your behalf by your employer.

Publication 571 (1-2024) Chapter 9 Worksheets 25
10.

Retirement Savings 

Contributions Credit 

(Saver's Credit)

If you or your employer makes eligible contributions (defined later) to a retirement plan, you may be able to take a 

credit of up to $2,000 (up to $4,000 if filing jointly). This 

credit could reduce the federal income tax you pay dollar 

for dollar.

Can you claim the credit? If you or your employer 

makes eligible contributions to a retirement plan, you can 

claim the credit if all of the following apply.

1. You aren’t under age 18.

2. You aren’t a full-time student (explained next).

3. No one else, such as your parent(s), claims an exemption for you on their tax return.

4. Your adjusted gross income (defined later) isn’t more 

than:

a. $73,000 for 2023 ($76,500 for 2024) if your filing 

status is married filing jointly;

b. $54,750 for 2023 ($57,375 for 2024) if your filing 

status is head of household (with qualifying person); or

c. $36,500 for 2023 ($38,250 for 2024) if your filing 

status is single, married filing separately, or qualifying surviving spouse with dependent child.

Full-time student. You are a full-time student if, during 

some part of each of 5 calendar months (not necessarily 

consecutive) during the calendar year, you are either:

• A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body 

of students in attendance; or

• A student taking a full-time, on-farm training course 

given by either a school that has a regular teaching 

staff, course of study, and regularly enrolled body of 

students in attendance; or a state, county, or local 

government.

You are a full-time student if you are enrolled for the number of hours or courses the school considers to be 

full-time.

Adjusted gross income. This is generally the amount 

on line 11 of your 2023 Form 1040 or 1040-SR. For purposes of this section, adjusted gross income shall be determined without regard to sections 911, 931, and 933. You 

must add to that amount any exclusion or deduction from 

gross income claimed for the year for:

• Foreign earned income,

• Foreign housing costs,

• Income for bona fide residents of American Samoa, 

Guam, or the Northern Mariana Islands, and

• Income from Puerto Rico.

Eligible contributions. These include:

1. Contributions to a traditional or Roth IRA;

2. Elective deferrals, including amounts designated as 

after-tax Roth contributions, to:

a. A 401(k) plan (including a SIMPLE 401(k) plan),

b. A section 403(b) annuity,

c. An eligible deferred compensation plan of a state 

or local government (a governmental 457 plan),

d. A SIMPLE IRA plan, or

e. A salary reduction SEP;

3. Contributions to a section 501(c)(18) plan; and

4. ABLE account contributions by the designated beneficiary as defined by section 529A.

They also include voluntary after-tax employee contributions to a tax-qualified retirement plan or a section 403(b) 

annuity. For purposes of the credit, an employee contribution will be voluntary as long as it isn’t required as a condition of employment.

Reducing eligible contributions. Reduce your eligible 

contributions (but not below zero) by the total distributions 

you received during the testing period (defined later) from 

any IRA, plan, or annuity included earlier under Eligible 

contributions. Also, reduce your eligible contributions by 

any distribution from a Roth IRA that isn’t rolled over, even 

if the distribution isn’t taxable.

Do not reduce your eligible contributions by any of the 

following.

1. The portion of any distribution which isn’t includible in 

income because it is a trustee-to-trustee transfer or a 

rollover distribution.

2. Distributions that are taxable as the result of an 

in-plan rollover to your designated Roth account.

3. Any distribution that is a return of a contribution to an 

IRA (including a Roth IRA) made during the year for 

which you claim the credit if:

a. The distribution is made before the due date (including extensions) of your tax return for that year,

b. You don’t take a deduction for the contribution, 

and

c. The distribution includes any income attributable 

to the contribution.

4. Loans from a qualified employer plan treated as a distribution.

5. Distributions of excess contributions or deferrals (and 

income attributable to excess contributions and 

deferrals).

26 Chapter 10 Retirement Savings Contributions Credit 

(Saver's Credit)

Publication 571 (1-2024)
6. Distributions of dividends paid on stock held by an 

employee stock ownership plan under section 404(k).

7. Distributions from an eligible retirement plan that are 

converted or rolled over to a Roth IRA.

8. Distributions from a military retirement plan.

9. Distributions from an inherited IRA by a nonspousal 

beneficiary.

Distributions received by spouse. Any distributions 

your spouse receives are treated as received by you if you 

file a joint return with your spouse both for the year of the 

distribution and for the year for which you claim the credit.

Testing period. The testing period consists of:

• The year in which you claim the credit,

• The 2 years before the year in which you claim the 

credit, and

• The period after the end of the year in which you claim 

the credit and before the due date of the return (including extensions) for filing your return for the year in 

which you claimed the credit.

Example. You and your spouse filed joint returns in 

2021 and 2022, and plan to do so in 2023 and 2024. You 

received a taxable distribution from a qualified plan in 

2021 and a taxable distribution from an eligible section 

457(b) deferred compensation plan in 2022. Your spouse 

received taxable distributions from a Roth IRA in 2023 and 

tax-free distributions from a Roth IRA in 2024 before April 

15. You made eligible contributions to an IRA in 2023 and 

you otherwise qualify for this credit. You must reduce the 

amount of your qualifying contributions in 2023 by the total 

of the distributions you and your spouse received in 2021, 

2022, 2023, and 2024.

Maximum eligible contributions. After your contributions are reduced, the maximum annual contribution on 

which you can base the credit is $2,000 per person.

Effect on other credits. The amount of this credit won’t 

change the amount of your refundable tax credits. A refundable tax credit, such as the earned income credit or 

the additional child tax credit, is an amount that you would 

receive as a refund even if you didn’t otherwise owe any 

taxes.

Maximum credit. This is a nonrefundable credit. The 

amount of the credit in any year can’t be more than the 

amount of tax that you would otherwise pay (not counting 

any refundable credits or the adoption credit) in any year. 

If your tax liability is reduced to zero because of other nonrefundable credits, such as the education credits, then you 

won’t be entitled to this credit.

How to figure and report the credit. The amount of the 

credit you can get is based on the contributions you make 

and your credit rate. The credit rate can be as low as 10% 

or as high as 50%. Your credit rate depends on your income and your filing status. See Form 8880 to determine 

your credit rate.

The maximum contribution taken into account is $2,000 

per person. On a joint return, up to $2,000 is taken into account for each spouse.

Figure the credit on Form 8880. Report the credit on 

line 4 of your 2023 Schedule 3 (Form 1040) and attach 

Form 8880 to your return.

11. How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, 

forms, or instructions, go to IRS.gov to find resources that 

can help you right away.

Preparing and filing your tax return. After receiving all 

your wage and earnings statements (Forms W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment 

compensation statements (by mail or in a digital format) or 

other government payment statements (Form 1099-G); 

and interest, dividend, and retirement statements from 

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you 

qualify for free tax preparation, or hire a tax professional to 

prepare your return.

Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your 

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax 

preparation may not be available through Free File. Go 

to IRS.gov/FreeFile to see if you qualify for free online 

federal tax preparation, e-filing, and direct deposit or 

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) 

program offers free tax help to people with 

low-to-moderate incomes, persons with disabilities, 

and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call 

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly 

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. 

Go to IRS.gov/TCE or download the free IRS2Go app 

for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military 

OneSource. For more information, go to 

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Publication 571 (1-2024) 27
Also, the IRS offers Free Fillable Forms, which can 

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to 

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you 

get an employer identification number (EIN) at no 

cost.

• The Tax Withholding Estimator (IRS.gov/W4app) 

makes it easier for you to estimate the federal income 

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The First-Time Homebuyer Credit Account Look-up 

(IRS.gov/HomeBuyer) tool provides information on 

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you 

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that 

will ask you questions and, based on your input, provide answers on a number of tax law topics.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax 

changes and interactive links to help you find answers 

to your questions.

• You may also be able to access tax law information in 

your electronic filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including enrolled 

agents, certified public accountants (CPAs), accountants, 

and many others who don’t have professional credentials. 

If you choose to have someone prepare your tax return, 

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the 

information required for the preparer to accurately 

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns 

for others should have a thorough understanding of tax 

CAUTION

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matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure 

online W-2 filing options to CPAs, accountants, enrolled 

agents, and individuals who process Form W-2, Wage 

and Tax Statement, and Form W-2c, Corrected Wage and 

Tax Statement.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our 

highest priority. We use these tools to share public information with you. Don’t post your social security number 

(SSN) or other confidential information on social media 

sites. Always protect your identity when using any social 

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter (OPI) Service. The 

IRS is committed to serving taxpayers with limited-English 

proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and 

every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with 

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and 

future accessibility products and services available in alternative media formats (for example, braille, large print, 

audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or 

account-related issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Preference, or 

Form 9000(SP) allows you to elect to receive certain types 

of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

28 Publication 571 (1-2024)
• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the 

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to 

IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook 

format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on 

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for 

iPad. Our eBooks haven’t been tested on other dedicated 

eBook readers, and eBook functionality may not operate 

as intended.

Access your online account (individual taxpayers 

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax 

year.

• See payment plan details or apply for a new payment 

plan.

• Make a payment or view 5 years of payment history 

and any pending or scheduled payments.

• Access your tax records, including key data from your 

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Get a transcript of your return. With an online account, 

you can access a variety of information to help you during 

the filing season. You can get a transcript, review your 

most recently filed tax return, and get your adjusted gross 

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional 

submit an authorization request to access your individual 

taxpayer IRS online account. For more information, go to 

IRS.gov/TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, 

which securely and electronically transfers your refund directly into your financial account. Direct deposit also 

avoids the possibility that your check could be lost, stolen, 

destroyed, or returned undeliverable to the IRS. Eight in 

10 taxpayers use direct deposit to receive their refunds. If 

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank 

or credit union that can open an account online.

Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your SSN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages (including shortened links), telephone calls, or social media channels to request or 

verify personal or financial information. This includes 

requests for personal identification numbers (PINs), 

passwords, or similar information for credit cards, 

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of tax-related 

identity theft, you can learn what steps you should 

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are 

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your 

SSN. To learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February 

for returns that claimed the EIC or the additional 

child tax credit (ACTC). This applies to the entire 

refund, not just the portion associated with these credits.

Making a tax payment. Go to IRS.gov/Payments for information on how to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated 

tax payment directly from your checking or savings account at no cost to you.

• Debit or Credit Card: Choose an approved payment 

processor to pay online or by phone.

• Electronic Funds Withdrawal: Schedule a payment 

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

CAUTION

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Publication 571 (1-2024) 29
• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to 

ensure that the electronic payments you make online, by 

phone, or from a mobile device using the IRS2Go app are 

safe and secure. Paying electronically is quick, easy, and 

faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you will receive immediate notification of whether your agreement has 

been approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/Form1040X 

for information and updates.

Checking the status of your amended return. Go to 

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed 

your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Responding to an IRS notice or letter. You can now 

upload responses to all notices and letters using the 

Document Upload Tool. For notices that require additional 

action, taxpayers will be redirected appropriately on 

IRS.gov to take further action. To learn more about the 

tool, go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may 

not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that is scheduled to begin providing translations in 2023. You will continue to 

receive communications, including notices and letters in 

English until they are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting an IRS 

TAC. Go to IRS.gov/LetUsHelp for the topics people ask 

CAUTION

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about most. If you still need help, TACs provide tax help 

when a tax issue can’t be handled online or by phone. All 

TACs now provide service by appointment, so you’ll know 

in advance that you can get the service you need without 

long wait times. Before you visit, go to IRS.gov/

TACLocator to find the nearest TAC and to check hours, 

available services, and appointment options. Or, on the 

IRS2Go app, under the Stay Connected tab, choose the 

Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. Their job is 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. To find your advocate's number:

• Go to TaxpayerAdvocate.IRS.gov/Contact-Us;

• Download Pub. 1546, Taxpayer Advocate Service Is 

Your Voice at the IRS, available at IRS.gov/pub/irs-pdf/

p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM 

(800-829-3676) to order a copy of Pub. 1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

30 Publication 571 (1-2024)
How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

report it to TAS at IRS.gov/SAMS.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level 

and who need to resolve tax problems with the IRS. LITCs 

can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, 

LITCs can provide information about taxpayer rights and 

responsibilities in different languages for individuals who 

speak English as a second language. Services are offered 

for free or a small fee. For more information or to find an 

LITC near you, go to the LITC page at 

TaxpayerAdvocate.IRS.gov/about-us/Low-IncomeTaxpayer-Clinics-LITC or see IRS Pub. 4134, Low Income 

Taxpayer Clinic List at IRS.gov/pub/irs-pdf/p4134.pdf.

Publication 571 (1-2024) 31
To help us develop a more useful index, please let us know if you have ideas for index entries.

Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

403(b) account 3

403(b) plans:

Basics 3

Benefits 3

Participation 4

Self-employed ministers 4

What is a 403(b) plan? 3

Who can set up a 403(b) 

account? 4

A

After-tax contributions 4

Assistance (See Tax help)

B

Basics 3

Benefits 3

C

Catch-up contributions 17

Chaplain 4

Church employees 16

Years of service 16

Contributions 4

After-tax 4

Catch-up 17

Elective deferrals 4, 5

Nonelective 4

Reporting 5

Correcting excess contributions 17

Credit, for retirement savings 

contributions 26

D

Distributions 18

10-year tax option 19

90-24 transfer 19

Deceased employees 22

Direct rollover 22

Eligible retirement plans 21

Frozen deposit 22

Gift tax 22

Minimum required 19

Qualified domestic relations 

order 22

Rollovers 20

Second rollover 22

Transfers 19

E

Elective deferrals 4, 5

Eligible employees 4, 12

Employer's annual work period 12

Excess contributions 17

Correcting 17

Determining 17

Excess amounts 18

Excess deferrals 18

Excess elective deferral 18

Excise tax 18

Excise tax:

Excess contributions 18

Reporting requirement 18

F

Full-time or part-time 11

G

Gift tax 22

I

Incidental life insurance 7

Includible compensation 7

403(b) plan 16

Figuring 9

Foreign missionaries 16

Incidental life insurance 7

Self-employed ministers 16

Includible compensation for your 

most recent year of service:

Definition 6

L

Limit on annual additions 6

Limit on elective deferrals 11

15-year rule 11

Figuring 14

General limit 11

M

MAC (See Maximum amount 

contributable)

Maximum amount contributable 5

Components 5

How to figure MAC 5

When to figure MAC 6

Minimum required distributions 19

Ministers 4, 16

Missing children 2

Most recent year of service 6

Most recent year of service, 

figuring 7

N

Nonelective contributions 4, 5

P

Pre-tax contributions 7, 10, 20, 24

Publications (See Tax help)

Q

qualified birth or adoption 18

qualified birth or adoption 

distribution 20

Qualified domestic relations 

order 22

R

Reporting contributions:

Chaplains 5

Reporting Contributions:

Self-employed ministers 5

Required distributions 19

retirement income accounts 3, 5

Retirement savings contributions 

credit 1, 26

Rollovers 18, 20

Roth contribution program 11

S

Salary reduction agreement 11

Self-employed ministers 4, 5, 12, 16

T

Tax help 27

Transfers 19

90-24 transfer 19

Conservatorship 19

Direct-trustee-to-trustee 20

Insolvency 19

Permissive service credit 20

V

Voluntary deductible 

contributions 22

W

What is a 403(b) plan? 3

Y

Years of service 11

Church employees 12, 16

Definition 12

Employer's annual work period 12

Full year of service 13

Full-time employee for the full 

year 12

Full-time for part of the year 13

Other than full-time for the full 

year 13

Part-time for the full year 13

Part-time for the part of the year 13

Self-employed minister 16

Total years of service 12

32 Publication 571 (1-2024)