It is your responsibility to ensure that salary reductions (salary that is excluded from income tax) does not exceed the amounts permitted under Section 415, 403(b) and 402(g) of the Internal Revenue Code.
Reduction amounts with all employers during the 2018 calendar year are limited to $18,500 under IRC Section 402(g) if you are under age 50.
If you will be age 50 or older by the end of 2017, your reduction amount limit is increased by $6,000 for a total maximum limit of $24,500.
After 2017, the 402(g) limit may be adjusted by the IRS for changes in the cost of living.If you participate in more than one employer’s plan, it is your responsibility to make certain that your total contributions do not exceed the IRC 402(g) limitation.
In addition, if you participate in this plan and meet both of the following criteria you are required to report to the Research Foundation the amount of outside contributions:
- Own a controlling interest (over 50 percent) of an outside, for-profit business
- Make contributions to a qualified retirement plan, simplified employee pension(SEP) or IRA under the outside business.
If you exceed the IRS limit, you should request a distribution of the excess by notifying the RF by March 1 of the year following the excess contribution. The excess will then be returned to you by April 15.You should consult a tax professional to determine the impact of this distribution on your personal tax returns.