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

November 12, 2021

Annual Addition Limit

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

Applicable RMD Age

Applicable RMD Age The first year for which an IRA owner or plan participant must begin to take RMDs from their tax-deferred retirement account. RMDs

SIMPLE 401(k) Plan

Definition A SIMPLE 401(k) plan is a 401(k) plan established by a small business for it’s employees. Earnings accrue on a tax-deferred basis and distributions

Required Minimum Distribution (RMD)

Definition The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year.  For retirement account

Required beginning date (RBD)

Definition The date by which a retirement account owner must begin distributing required minimum distribution (RMD) amounts from a Traditional,  SEP or SIMPLE IRA, a

Be among the first to know when

IRA Rules
Change