Avoiding Mistakes with 403(b) Contributions

To avoid exceeding Internal Revenue Code Section 415(c) limits for employer and employee contributions to 403(b)s, the IRS suggests: 

• An employer should understand that it has the responsibility to limit contributions and issue correct Forms W-2. 
• Establish procedures with vendors to limit contributions.
• Educate employees. 
• Conduct year-end reviews of employee and employer contributions and compare them with current legal limits.