Annual Addition Limit
Last Updated January 15, 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 |
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.
