annual defined contribution limit mean
DEFINITION of 'Annual Addition'. The total dollar amount contributed in a given year to a participant's retirement account under a defined-contribution plan.An annual addition is the sum of employer contributions, employee contributions and forfeitures in a particular year. The annual addition is subject to a maximum limit.This annual addition limit is the lesser of 100% of the participant's compensation for the year or the dollar limit in effect for the year.The annual addition dollar limit was fixed at $49,000 for each year from 2009 to 2011.EFINITION of 'Annual Addition'. The total dollar amount contributed in a given year to a participant's retirement account under a defined-contribution plan.