Annual Addition

Once you reach middle age, Annual Addition is the amount of girth you add to your mid-section each year. Outside of that, it represents an annual total related to retirement savings.

Some retirement plans (like 401k, IRA, SEP, Goodyear) have a cap on the amount that can be put in during a given year. For these defined-contribution retirement accounts, the annual addition figure represents the total amount added during the year. Add up things like contributions from the company, the amount the employee themselves put into the plan and other specific items. The sum of those various figures gives you the annual addition total.