Common use of Contribution Limitations Clause in Contracts

Contribution Limitations. Treatment of contributions in excess of limitations. The exclusion provided under § 1.403(b)–3(a) applies to a partici- pant only if the amounts contributed by the employer for the purchase of an annuity contract for the participant do not exceed the applicable limit under sections 415 and 402(g), as described in this section. Under § 1.403(b)–3(a)(4), a section 403(b) contract is required to include the limits on elective deferrals imposed by section 402(g), as described in paragraph (c) of this section. See paragraph (f) of this section for special rules concerning excess contributions and deferrals. Rollover contributions made to a section 403(b) contract, as described in § 1.403(b)–10(d), are not taken into account for purposes of the limits imposed by section 415, § 1.403(b)– 3(a)(9), section 402(g), § 1.403(b)–3(a)(4), and this section, but after-tax em- ployee contributions are taken into ac- count under section 415, § 1.403(b)– 3(a)(9), and paragraph (b) of this sec- tion.