A finished FIN-355 Topic 3 contribution rules worksheet example, testing a worker's deferral, catch-up, employer match and both spouses' IRAs against the statutory rule that governs each dollar. Searches like "fin 355 topic 3 assignment example", "fin355 topic 3 sample" and "fin-355 topic 3 example" land here.
What a finished FIN-355 Topic 3 contribution rules worksheet looks like
The finished worksheet follows the worker's plan for the year on illustrative pay of 110,000. She intends to defer 15 percent of salary, 16,500, into her workplace plan, and her employer matches half of the first 6 percent, 3,300. The worksheet tests her 16,500 against the elective deferral limit, raised by a catch-up allowance because she is past the eligibility age, while the employer's 3,300 counts only toward a separate ceiling on total additions. Pre-tax and Roth deferrals share one limit, so splitting them creates no extra room. A spousal IRA is then opened for her husband, supported by her earnings on a joint return. Deductibility of each spouse's traditional IRA is tested against the income ranges that apply when one spouse is covered at work, and a Roth IRA is checked against its own phase-out.
How a FIN-355 Topic 3 example is structured
The worksheet is laid out as a ledger of intended dollars, each line naming the rule that decides it. An opening block states the household, the tax year the assignment's limit table belongs to and a note that every limit is set by statute and adjusted, so the figures come from that table. The first section tests her deferral against the elective limit and computes the room left, with the catch-up allowance on its own line and a note that recent legislation routes some higher earners' catch-up money into Roth form. A second section places the employer match under the total additions ceiling and explains why it leaves her deferral room alone. The IRA section treats the two spouses separately: eligibility first, then deductibility, then the Roth phase-out. A consequences box records what an excess contribution triggers. The final line totals the year's saving by account.
Each dollar tagged with its rule
Deferral, catch-up, match and IRA money each sit on a separate line, with the statutory limit that governs that particular dollar named beside it.
Employer money under a separate ceiling
The 3,300 match counts toward the total additions limit and not the deferral limit, which is why it leaves her own deferral room untouched.
Roth and pre-tax sharing one limit
Splitting deferrals between Roth and pre-tax changes when tax is paid but not how much may go in, so the worksheet tests the combined total once.
A spousal IRA for the husband
Her earnings on a joint return support an IRA for a spouse with no pay of his own, a contribution many first drafts leave out entirely.
Deductibility tested spouse by spouse
Because she is covered at work and he is not, the two traditional IRAs face different income ranges, and the worksheet applies each range to the right person.
Where marks go in FIN-355 Topic 3
Quoting this year's limits from memory as if permanent costs the first marks, because the limits are set by statute, adjusted over time and occasionally restructured, and the assignment's table is the only defensible source. Adding the employer match to the employee's deferral and testing both against one limit is the commonest arithmetic error, and it can show a worker over the limit when she still has room. Papers that treat Roth deferrals as extra room beyond the pre-tax limit double the allowance. Leaving out the spousal IRA drops a contribution the household was entitled to make. Applying the covered worker's deduction range to a spouse who is not covered, or ignoring coverage altogether, misstates the tax result for one of them. A worksheet silent on excess contributions treats a limit as a suggestion rather than a rule.
Get a FIN-355 Topic 3 example written to your instructions
Send the FIN-355 Topic 3 instructions, your rubric and the limit table or case your section provides. We write a custom example to them, with every intended dollar tagged with its governing rule, employer money kept under its own ceiling, both spouses' IRA eligibility tested and limits read from your table, in 24 to 48 hours. The first one is free.
FIN-355 Topic 3 questions, answered
Why does the worksheet avoid stating current contribution limits?
Because they change. Deferral, catch-up and IRA limits are set by statute and adjusted, usually for inflation, and legislation has also changed who qualifies for some catch-up amounts and in what form. A figure accurate in one year is wrong in the next. The worksheet reads each limit from the table the assignment supplies and names its year, so the reasoning stays correct when the numbers move.
Does the employer match count against the employee's limit?
No. The elective deferral limit applies to what the employee chooses to put in from pay. Employer contributions, including a match, count toward a separate and larger ceiling on total annual additions to the account, which also includes the employee's own deferrals. Confusing the two is the most frequent arithmetic error on this topic, and the worksheet keeps them on separate lines to prevent it.
Is the worksheet advice about my own contributions?
No. The worker, her pay and her husband are composites, and the limits come from an assignment table rather than current law. Your own contributions depend on your plan's rules, your income, your filing status and the limits in force for the year. The example shows how FIN-355 wants the rules applied in order; a tax professional should review your actual situation.