Amount of annual limit for defined contribution plans
| What is the amount of the annual defined contribution plan limit? |
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The amount which may be added to the account of a participant - the annual addition -- may not exceed the lesser of (a) a dollar amount, e.g., $40,000 with respect to 2002, adjustable annually; and (b) 25% of the participant's compensation for the year. An annual addition consists of the sum of employer contribution, any employee contribution and any forfeiture allocated to a participant. |
