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Learning, Sharing, and Teaching => Investor Alley => Topic started by: phwadsworth on August 25, 2015, 09:26:05 AM

Title: Contribute to previous year's 403(b) ?
Post by: phwadsworth on August 25, 2015, 09:26:05 AM
 I am way behind on maxing out my 403(b) this year, so much so, that I won't make enough in the rest of this year to hit the goal, but I could make it if I can contribute towards 2015's limit in the first few months of 2016.  Can I do this?  Or am I going to miss the opportunity to max out in 2015?

I tried Google, but I'm not finding the info.  I know I can make a contribution in 2016 to fund my ROTH in 2015, but can I do the same for my employer sponsored 403(b)? (No, my HR dept doesn't know, they're worthless).

thanks.
Title: Re: Contribute to previous year's 403(b) ?
Post by: gobius on August 25, 2015, 09:48:56 AM
I know that I asked this same question early last year about my 401(k) on the MMM forums.  I was wanting to make 2013 contributions in 2014.  From what I remember, you can't do this for a 401(k).  403(b) may be different though.
Title: Re: Contribute to previous year's 403(b) ?
Post by: charis on August 25, 2015, 09:50:11 AM
I believe the deadline is December 31, 2015.  This is based on an old article that I read.  I think it is the same as for a 401K, which is also Dec. 31. 
Title: Re: Contribute to previous year's 403(b) ?
Post by: MDM on August 25, 2015, 09:56:56 AM
No.

Unlike IRAs, for which you can write a check any time, 403b contributions must be withheld from your paycheck by your employer and they are applied to the year in which the withholding occurs.

See https://www.law.cornell.edu/uscode/text/26/403 and note references to "taxable year".
Title: Re: Contribute to previous year's 403(b) ?
Post by: seattlecyclone on August 25, 2015, 09:58:13 AM
Nope, can't do it. The limit resets at the end of the calendar year, with no provision to contribute a few months late like with IRAs.
Title: Re: Contribute to previous year's 403(b) ?
Post by: phwadsworth on August 26, 2015, 05:23:47 AM
Thanks everyone, much appreciated!
Going to need to figure out a way to catch up those savings, time to tighten the belt!