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:
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.