Maximum Allowance Contribution Calculation. In addition to the Salary Reduction Agreement, a calculation form indicating the maximum allowance of the employee’s salary must be submitted in accordance with IRS Code, Section 403. In the event that an employee chooses a “Special Option”, a calculation form detailing the determination of the special amount must be submitted. The responsibility for the proper calculation is that of the employee, and, accordingly, all calculations must be signed by the employee and company representative. Companies are to provide such forms. Companies shall annually review the exclusion allowance for each policy holder to determine that the premium continues to be fully excludable from current taxable income.
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