The National Directory of Certified Public Accountants

Ask A CPA - Keogh Plans

Defined Benefit Plan - Limitation On Annual Benefit

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

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