limits on employer contributions and participant allocation
| What general limits on benefits and contributions are applicable to a participant? |
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As to a defined benefit plan, the Internal Revenue Code limits the amount of the annual benefit which an employee may accrue under the plan and as to a defined contribution plan, the Code limits the annual amount which may be allocated to an employee's account. In short, two separate rules exist: one limits the amount of the employer contribution to a qualified plan and the other limits the amount which may be allocated to a participant under that same qualified plan. |
