# Prop. Treas. Reg. § 1.403(b)-3: Exclusion for contributions to purchase section 403(b) contracts.

Proposed regulation, not in force. REG-130241-04, 70 FR 31214, published 2005-05-31 <https://www.federalregister.gov/documents/2005/05/31/05-10268/limitations-on-benefits-and-contributions-under-qualified-plans>. Interprets 26 U.S.C. § 403.

Par. 4. Section 1.403(b)-3, as proposed to be revised on November 16, 2004 (69 FR 67086), is further proposed to be amended by adding text to paragraph (b)(4)(ii) to read as follows:

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(ii) Exceptions. The exclusion from gross income provided by section 403(b) applies to contributions made for former employees with respect to compensation described in § 1.415(c)-2(e)(3)(ii) (relating to certain compensation paid within 2 1/2 months following severance from employment), compensation described in § 1.415(c)-2(g)(4) (relating to compensation paid to participants who are permanently and totally disabled), and compensation relating to qualified military service under section 414(u).

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