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What is the exclusion allowance on a 403(b) plan?

April 26, 2017allowance exclusion Plan

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What is the exclusion allowance on a 403(b) plan?

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The exclusion allowance is one limit on maximum contributions to a 403(b) retirement plan, also known as a TSA. It is determined by the following equation: exclusion allowance = 20% x current compensation x years of service – prior contributions.