Your employer’s 403(b) plan will allow you to contribute up to a certain percentage of your before-tax pay. Of course, 403(b) contributions may not exceed what you earn. Additionally, if you are age 50 or older, you are allowed to make "catch-up" contributions. That is, you are allowed to contribute extra amounts over and above your before-tax 403(b) contribution limit. Also, your employer may make contributions. Therefore, your individual 403(b) contributions plus contributions you employer makes can add up to $46,000 (in 2008) or 100 percent of your compensation, whichever is less.

The table below shows the maximum dollar amount the law allows you and your employer to contribute. Each year, your 403(b) contribution limits will be increased periodically to allow for inflation.

There are specific exceptions. To be certain how much you can contribute, ask a tax professional or a benefits specialist in your organization.