15-Year Rule If you have at least 15 years of service with a public school system, hospital, home health service agency, health and welfare service agency, church, or convention or association of churches (or associated organization), and you are an eligible employee (as described in chapter 1), the limit on elective deferrals to your 403(b) account is the least of: $3,000, $15,000, reduced by increases to the general limit you were allowed in earlier years because of this rule, or $5,000 times the number of your years of service for the organization, minus the total elective deferrals made by your employer on your behalf for earlier years. If you qualify for the 15-year rule, your elective deferrals under this limit can be as high as $13,500 for 2001 and $14,000 for 2002. Excess elective deferrals. If the amount contributed is more than the allowable limit, you must include the excess in your gross income for the year contributed. This is explained in chapter 11.