403(b) Supplemental Retirement Program Contribution Limits
Contribution limits for 403(b) plans for 2021 are defined as follows:
- 100% of salary (Section 415 of the Internal Revenue Code) or
- $19,500 (Section 402(g) of the Internal Revenue Code) or
- $58,000 (Section 415 of the Internal Revenue Code) - this limit includes 403(b) Base Retirement Program (BRP) contributions made by both you and MSU
How To Determine Your 2021 Contribution Limit
- Use the annual salary column below to determine which limit governs your contributions.
- Determine the dollar amount you may defer.
|Annual Salary||Governing Limit||Contribution Limit|
|$19,500 or less||415||100% of Salary|
|$19,501 up to $290,000||402(g)||$19,500 * (Total must include all voluntary plan contributions)|
|$290,001 or greater||402(g)||$19,500 * (Total must include all voluntary plan contributions)|
*If you are enrolled in the 403(b) Base Retirement Program on a voluntary basis, your 5% employee contribution must be subtracted from the total contribution limit. Some employees may have their 403(b) SRP contributions reduced due to meeting the Section 415 limit first.
On your Earnings Statement, if the retirement contribution is coded as "VOL BSE RET," your participation is voluntary (generally an employee is under the age of 35 and/or has less than 24 Full Time Equivalent (FTE) service months). If the retirement contribution is coded as "MN BSE RET," your participation is mandatory. The 5% BRP amount would not need to be subtracted from the deferral limit.
Scheduled 402(g) Increases
|Year||Annual 402(g) Contribution Limit|
Cost of living adjustments may allow for additional increases to these limits in increments of $500 per year.
Additional Catch-up Contributions
- Age 50 catch-up - any employee who obtains or is over the age of 50 in 2021 is eligible for an additional $6,500 "catch-up" contribution.
- This catch-up provision is not applicable to the 402(g) or 415 contribution limits as explained above.
Scheduled Catch-up Increases
|Year||Annual 402(g) Contribution Limit||Additional
|Total Contribution Limit|
Cost of living adjustments (COLAs) may allow for additional increases to these limits in increments of $500 per year.
Juanita is a 30-year-old newly hired Associate Professor, is considered a Voluntary 403(b) Base participant, and has an annual salary of $60,000. How much may she contribute to the 403(b) Supplemental Program in 2021?
|Annual Salary||= $60,000|
|5% Voluntary BRP Contributions||= $3,000|
|Minus 5% Voluntary BRP Contributions||= -$3,000|
|Available Amount for 403(b) SRP||= $16,500|
Please Note: Employees hired after the first of the year, will need to prorate their voluntary contributions.
Roger is a 52-year-old CTU member who has been with MSU for 20 years, is considered a Mandatory 403(b) Base participant, and has an annual salary of $45,000. How much may he contribute to his 403(b) Supplemental Program in 2021?
|Annual Salary||= $45,000|
|Plus Age 50 Catch-up||= $ 6,500|
|Available Amount for 403(b) SRP||= $26,000|
Note: Employees hired on or after 1/1/96 are subject to Section 401(a)(17) of the Internal Revenue Code. This limit prohibits employers from making retirement plan contributions on the amount of annual salary in excess of $290,000 for 2021. If you are in this category, you may see your 403(b) contributions reduced and/or stopped within a calendar year. This limit may be indexed for inflation in $5,000 increments, in future years.