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House of Representatives Ways and Means committee chairman Bill Thomas (R-CA) introduced
legislation on October 7, 2002 that would significantly raise contribution limits for many retirement plans, including
the 403(b). Under his plan contribution limits for the 403(b), 457 and 401(k) would rise to $15,000 for 2003.
These limits are currently scheduled to be $12,000 for 2003.
Known as HR 5558, the bill would
also: raise catch-up contributions in IRAs and 403(b)-like retirement plans for those age 50 and older; push IRA contribution
limits to $5,000; and raise the required distribution age from the current 70 1/2 to age 75. The bill cleared the House Committee
on Ways and Means. It still has to come before the full House, as well as the Senate, before it can be sent to the
president to be signed into law.
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