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What were the 403(b) contribution limits in 2014?

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Quick Answer

The 403(b) contribution limits in 2014 were $17,500 with a catchup contribution limit of $5,500 for workers age 50 and older, unchanged from 2013, states the Internal Revenue Service. The 2014 limits did not change because the Consumer Price Index did not rise enough to require an adjustment.

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Full Answer

Known as a tax-sheltered annuity plan, the 403(b) plan offers public school employees, ministers and employees of tax-exempt organizations a method of saving for retirement, explains the IRS. Employees can invest the funds in insurance company annuity contracts, mutual funds, or retirement income accounts with investments in mutual funds or annuities. One of the 403(b) plan benefits is that employees are not taxed on their contributions until they start withdrawing funds from the plan, which typically occurs after retirement.

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