ANNUAL ADDITION
The whole dollar amount contributed within a given year to a retirement account of a participant on a defined-contribution plan. The annual addition is the sum of the employer contributions, employee forfeitures and contributions within a particular year. A maximum limit may be applied to an annual addition. The annual addition restriction is the lesser of the full compensation of the participant or the dollar limit applied for the year. From 2009-2011, the annual addition dollar limitation was fixed at 49,000 USD.
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