DC415Limit returns the 415(c)(1)(A) DC Maximum Annual Addition dollar amount for a
given year. The annual addition credited to the account of a participant in a
defined contribution plan for the limitation year cannot exceed this amount.
DC415Limit for year 𝑥 is based on the
following formula:
Where 𝐶𝑃𝐼𝑦𝑒𝑎𝑟
is the “3rd quarter CPI” (sum of
the CPI-U for the months of July, August, and September) in the given year.
(September CPI is usual published around October 13.) If the amount so determined is not a multiple of $1,000,
it is rounded to the nearest multiple of $1,000. Not less than the amount for
the prior year. Note: ·
Prior to 1987 the limit
was no limit. ·
From 1987
through 1994 the limit was $30,000. ·
From 1995 through 2001, the limit was $30,000,
indexed for the increase
in 4th quarter CPI ($5,000 rounding). |
Syntax
DC415Limit (DeterminationYear, [LawYear],
[Inflation])
Parameter Name |
Description |
DeterminationYear |
A
4 digit number, or an optional text value as shown in the table below. If the
DeterminationYear is after the LawYear, this is a projected
calculation based on the Inflation assumption. Click to view various options for the DeterminationYear parameter. |
LawYear |
A
4 digit number. |
Inflation |
The
assumed rate of inflation: the IRS
Cost-of-Living Adjustment for future years, as measured by the
year-over-year increase in CPI-U. This
is used only for a projected calculation. Optional:
default = 0% |
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