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Small Business Services

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  4. Defined contribution plan - Limitation on the annual benefit

Defined contribution plan - Limitation on the annual benefit

For 2016, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $210,000. For 2014 and 2015, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $210,000. For 2013, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $205,000.

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