IRS Form 15417-G – In the world of retirement planning for employees in public schools, tax-exempt rganizations, and certain ministers, 403(b) plans play a crucial role in building tax-advantaged savings. One key aspect of maintaining compliance within these plans involves properly handling elective deferrals—voluntary contributions employees make from their salary. To ensure everything aligns with Internal Revenue Code requirements, the IRS provides specialized tools like Form 15417-G, also known as the 403(b) Plan Elective Deferrals Worksheet 12A – Determination of 403(b) Status. This worksheet helps plan administrators and participants verify that elective deferrals, including designated Roth contributions, meet the necessary standards to preserve the plan’s tax-favored status.
Whether you’re a plan sponsor, HR professional, or individual participant navigating 403(b) contributions, understanding this form can prevent compliance pitfalls and maximize retirement benefits. In this SEO-optimized guide, we’ll break down what IRS Form 15417-G is, its purpose, how to use it, and key considerations for 2026 and beyond. We’ll draw from official IRS resources to provide accurate, up-to-date insights.
What Is IRS Form 15417-G and Its Purpose?
IRS Form 15417-G is a specialized worksheet released by the Department of the Treasury’s Internal Revenue Service, cataloged as Number 94035V and revised in April 2023. It’s designed specifically for 403(b) plans, which are tax-sheltered annuity programs allowing eligible employees to defer a portion of their salary into retirement savings on a pre-tax or after-tax (Roth) basis.
The primary purpose of Worksheet 12A is to determine the 403(b) status of elective deferrals. It acts as a compliance checklist, evaluating whether the plan’s deferral features adhere to IRS rules under sections like 402(g) and 403(b). A “Yes” response to questions generally indicates compliance, while a “No” flags potential issues that require explanation and possible corrective action. This helps avoid penalties, ensure proper tax treatment, and maintain the plan’s qualified status.
Key features include:
- Focus on Elective Deferrals: Covers pre-tax and designated Roth contributions.
- Cross-References: Links to other worksheets (e.g., for limits, eligibility, and vesting) for a holistic review.
- Optional Sections: Addresses advanced features like Eligible Automatic Contribution Arrangements (EACAs).
This form is particularly useful during plan audits, amendments, or annual reviews to confirm that deferrals are defined, limited, and distributed correctly.
Who Needs to Use Worksheet 12A for 403(b) Plans?
Not every 403(b) plan participant or sponsor will interact with Form 15417-G directly, but it’s essential for:
- Plan Administrators and Sponsors: To verify compliance during setup, operation, or IRS examinations.
- Eligible Employers: Public educational institutions, 501(c)(3) nonprofits, and churches offering 403(b) plans.
- Participants with Deferrals: Individuals making elective contributions, especially those using catch-up provisions or Roth options, may reference it indirectly through their plan documents.
- Tax Professionals: CPAs or financial advisors assisting with retirement plan compliance.
If your plan doesn’t offer elective deferrals, you can skip this worksheet entirely. However, for plans that do, completing it ensures adherence to universal availability rules, preventing discrimination against certain employees.
Step-by-Step Breakdown: How to Complete IRS Form 15417-G
The worksheet is structured into logical sections with yes/no/N/A questions, requiring references to your plan documents. All items must be addressed except shaded cross-references. Here’s a detailed overview of each section, based on the official form content.
Section I: Applicability
This initial check determines if the worksheet applies:
- I(a): Does the plan offer elective deferrals? If “No,” stop here. If “Yes,” proceed.
- I(b): Are elective deferrals properly defined in the plan? Explain any “No” with details on discrepancies.
Section II: Contributions
Focuses on how contributions are handled:
- II(a): Cross-references universal availability (see Worksheet 1A for eligibility rules).
- II(b): For Roth contributions, confirm they are irrevocably designated at the time of election.
- II(c): Ensure Roth contributions are treated as includible in income when they would have been received in cash.
- II(d): Verify separate accounting for pre-tax and Roth deferrals.
Any “No” answers here must be explained, as they could impact tax treatment.
Section III: Limits and Catch-Ups
Addresses contribution caps:
- III(a): Basic limit under section 402(g)(1) – refer to Worksheet 6A.
- III(b): Age 50 and special 403(b) catch-ups – also Worksheet 6A.
- III(c): Handling excess deferrals – Worksheet 6A.
- III(d): Compensation definition – Worksheet 6A.
These ensure deferrals don’t exceed annual limits (e.g., $23,000 for 2026, plus catch-ups).
Section IV: Universal Availability
- IV(a): Confirms broad access under Treas. Reg. 1.403(b)-5(b) – see Worksheet 1A.
This prevents plans from favoring highly compensated employees.
Section V: Vesting
- V(a): Vesting rules – refer to Worksheet 2B.
Ensures participants gain ownership of contributions over time.
Section VI: Eligible Automatic Contribution Arrangements (EACAs)
Optional if your plan includes auto-enrollment:
- VI(a): Does the plan have an EACA? If “No,” skip.
- VI(b): Identifies covered employees.
- VI(c): Uniform default percentage.
- VI(d): Proper notice to employees.
- VI(e)-(g): Rules for permissible withdrawals within 90 days, amounts, and fees.
- VI(h): Treatment of distributed deferrals and matching contributions.
- VI(i): Extended deadline for distributing excess contributions if all participants are covered.
The worksheet ends with a note to review Worksheet 15 for distribution requirements.
Tips for completion:
- Gather plan documents, prior worksheets, and compensation records.
- Note that technical rules may evolve with new IRS guidelines.
- If “No” answers arise, consult a tax advisor to address issues promptly.
Common Challenges and Best Practices for 403(b) Elective Deferrals
Navigating 403(b) compliance isn’t always straightforward. Common pitfalls include improper Roth designations, exceeding limits, or failing universal availability tests. To avoid these:
- Stay Updated: IRS rules can change; check for revisions post-2023.
- Use Related Resources: Pair with Publication 571 (Tax-Sheltered Annuity Plans) for deeper guidance.
- Automate Where Possible: EACAs can boost participation but require strict adherence to notice and withdrawal rules.
For 2026, with potential inflation adjustments to limits, reviewing this worksheet annually is advisable.
Where to Download IRS Form 15417-G
You can download the official PDF directly from the IRS website: https://www.irs.gov/pub/irs-pdf/f15417g.pdf. Always use the latest version to ensure compliance.
In summary, IRS Form 15417-G empowers 403(b) plan stakeholders to maintain robust, compliant elective deferral programs. By methodically completing Worksheet 12A, you safeguard your retirement savings’ tax advantages and avoid costly errors. If you’re managing a 403(b) plan in Lhokseumawe or elsewhere, prioritizing this tool can lead to smoother operations and better financial outcomes. For personalized advice, consult an IRS-approved professional.