How Do I Figure My MAC?

Generally, contributions to your 403(b) account are limited to the lesser of:

• The limit on annual additions, or

• The limit on elective deferrals.

Depending upon the type of contributions made to your 403(b) account, only one of the limits may apply to you.

Which limit applies. Whether you must apply one or both of the limits depends on the type of contributions made to your 403(b) account during the year.

Elective deferrals only. If the only contributions made to your 403(b) account during the year were elective deferrals made under a salary reduction agreement, you will need to figure both of the limits. Your MAC is the lesser of the two limits.

Nonelective contributions only. If the only contributions made to your 403(b) account during the year were nonelective contributions (employer contributions not made under a salary reduction agreement), you will only need to figure the limit on annual additions. Your MAC is the limit on annual additions.

Elective deferrals and nonelective contributions. If the contributions made to your 403(b) account were a combination of both elective deferrals made under a salary reduction agreement and nonelective contributions (employer contributions not made under a salary

Publication 571 (1-2026) Chapter 2 Maximum Amount Contributable (MAC) 5

reduction agreement), you will need to figure both limits. Your MAC is the limit on the annual additions.

Catch-up contributions. If you are age 50 or older, you may be able to make additional catch-up contributions, which are explained in chapter 6.

You need to figure the limit on elective deferrals to determine if you have excess elective deferrals, which are explained in chapter 7.

Worksheets. Worksheets are available in chapter 9 to help you figure your MAC.