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Annual Addition |
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Annual Addition The maximum dollar amount that may be contributed to a participant's retirement account under a defined-contribution plan. Notes: For instance, the maximum annual addition for a participant under a defined-contribution plan for any tax year is 100% of the individual's eligible compensation or a certain dollar limit, whichever is less. For 2005, the dollar limit is $42,000, but every new tax year this may be indexed for inflation by a $1,000 increment. |
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| Employee deferrals are not included in the deduction limit, though they are included in the annual addition limit. 419(d)(2) states that deductible contributions to the trust to fund a post-retiree medical reserve are treated as an annual addition to the employer's defined-contribution plan and, thus, cannot exceed the amount that can be contributed to a defined-contribution plan (e. But the discrepancy between years of budget increases and years of mediocre academic outcomes did not deter New York State Supreme Court Judge Leland DeGrasse from deciding that the problem could be solved by an annual addition of $5. |
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