Annual Addition

The maximum dollar amount that may be contributed to a participant's retirement account under a defined-contribution plan.

Investopedia Says:
For instance, the maximum annual addition for a participant under a defined-contribution plan for any tax year is 100% of the individual's eligible compensation or a certain dollar limit, whichever is less. For 2005, the dollar limit is $42,000, but every new tax year this may be indexed for inflation by a $1,000 increment.

Related Links:
New changes to the law can have a huge impact on your nest egg. New Retirement Plan Limits For 2007
Learn about eligibility requirements, contributions to and distributions from the plans that are established by an employer to provide retirement benefits for employees and their beneficiaries. The 401(k) and Qualified Plans Tutorial
We offer some solutions for the individual taxpayer as well as the small business owner. Common Questions About Retirement Plans