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Annual Addition Limit

Last Updated November 28, 2014

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

Limit

2002

$40,000

2003

$40,000

2004

$41,000

2005

$42,000

2006

$44,000

2007

$45,000

2008

$46,000

2009

$49,000

2010

$49,000

2011

$49,000

2012

$50,000

2013

$51,000

2014

$52,000

2015 $53,000

 

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.