What is the maximum contribution I can make under a defined benefit plan?
It depends. The maximum contribution amount is not a simple stated dollar amount, but rather the amount calculated as necessary to fund the maximum annuity benefit allowed under IRS regulations. The current maximum annual annuity is $160,000 for 2002, payable at retirement ages between 62-65, assuming you have a compensation average at or above $160,000. The contribution will vary depending on your age, and how many years you have to fund the annuity benefit. The $160,000 maximum annuity is reduced for a Normal Retirement Age that is earlier than age 62.
