Save time with our cheat sheets, fact sheets, checklists & books!

November 12, 2021

Annual Addition Limit

Your Guide

Print

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

Annual Addition Limits

The dollar limits  are as follows:

Year

Limit

2009

$49,000

2010

$49,000

2011

$49,000

2012

$50,000

2013

$51,000

2014

$52,000

2015

$53,000

2016

$53,000

2017

$54,000

2018

$55,000

2019

$56,000

2020

$57,000

2021

$58,000

2022 $61,000

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.
More

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules
Change