Introduction This publication can help you better understand the tax rules that apply to your 403(b) (tax-sheltered annuity) plan. In this publication you will find information to help you: Determine the maximum amount that can be contributed to your 403(b) account in the current year, Determine the maximum amount that could have been contributed to your 403(b) account in the previous year, Identify excess contributions, Determine the contribution limits for years in which contributions are made to both a 403(b) plan and a 457 plan, and Understand the basic rules for distributions and rollovers from 403(b) accounts. This publication does not provide specific information on the following topics. Distributions from 403(b) accounts. This is covered in Publication 575, Pension and Annuity Income. Rollovers. This is covered in Publication 590, Individual Retirement Arrangements (IRAs). How to use this publication. This publication is organized into chapters to help you find information easily. Chapter 1 answers questions frequently asked by 403(b) plan participants. Chapters 2 through 8 explain the rules and terms you need to know to figure the maximum amount that could have been contributed to your 403(b) account for 2001. Chapter 9 explains how to determine the maximum amount that can be contributed to your 403(b) account (your MAC) for 2002. Chapter 9 explains recent changes and provides examples to assist you in figuring your MAC for 2002. Chapter 10 explains the requirements for the new catch-up contributions. Chapter 11 provides general information on the prevention and correction of excess contributions to your 403(b) account. Chapter 12 provides general information on distributions and rollovers. Chapter 13 provides blank worksheets that you will need to accurately and actively participate in your 403(b) plan. Filled-in samples of most of these worksheets can be found throughout this publication. Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions. You can e-mail us while visiting our web site at www.irs.gov. You can write to us at the following address: Internal Revenue Service Technical Publications Branch W:CAR:MP:FP:P 1111 Constitution Ave. NW Washington, DC 20224 We respond to many letters by telephone. Therefore, it would be helpful if you would include your area code and daytime phone number in your correspondence.