Creating annual limits

Use this procedure to define the annual limits. Annual limits are the maximum compensation and maximum annual additions for a calendar year. In the U.S., these are limits provided by the IRS.

  1. Select Administration > Set Up.
  2. In the Primary pane, click Annual Limits.
  3. Click Create.
  4. Specify this information:
    Year

    Specify the year for which you are defining the annual limits.

    Compensation

    Specify the maximum compensation for an employee in a calendar year.

    Annual Additions

    Specify the maximum amount that can be added per calendar year.

    Annual Additions are the total of all employer contributions in a year, employee contributions (not including rollovers), and forfeitures allocated to a participant's account.

  5. Click Save.