For 2011, what is the maximum annual combined amount the employer and employee can contribute to a 403(b) plan for an employee?
A) $35,000
B) $49,000
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C) $55,000
D) $60,000
A) $35,000
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B) $49,000
Correct.
The maximum combined amount both the employer and the employee can contribute annually to the plan is generally the lesser of:
- $49,000 for 2011 (subject to annual cost-of-living increases); or
- an employee's includible compensation for his or her most recent year of service.
Employees meeting certain requirements and plan participants may be eligible to make additional contributions.
C) $55,000
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D) $65,000
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