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.
