Annual Addition Limit
Last Updated January 27, 2011
Definition
The annual Addition limit is the maximum amount that may be added to a defined contribution plan on behalf of a participant for any plan year. The maximum amount is the lesser of the following: (a). 100% of the participants compensation for the year or ( b). The dollar limit that is in effect for the year
The dollar limits for are as follows:
|
Year |
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
2002 |
|
Limit |
$46,000 |
45,000 |
44,000 |
42,000 |
41,000 |
40,000 |
40,000 |
|
2009 |
2010 | 2011 | |||||
|
$49,000 |
$49,000 | $49,000 |
Referring Cite
IRC § 415(b)(1)(A) and IRC § 415(c)(1)(A), Treas Reg §1.415(c)-1
Additional Helpful Information
- The term annual additions generally means the sum for any year of employer contributions, employee contributions, and forfeitures.
- For plans that include salary deferral features, individuals who are at least age 50 by the end of the year may make catch-up contributions in addition to the annual addition limit, if catch-up contributions are permitted under the plan.