Estimate your Cash Balance + 401(k) deduction (2025).
A planning estimate only — final numbers require actuarial certification. Use it to see the order-of-magnitude opportunity for your age and compensation.
Combined deductible: $292,500
- Cash Balance plan
- $215,000
- 401(k) + profit sharing
- $77,500
- Estimated tax savings (37% bracket)
- $108,225
Estimate only. Actual contributions depend on plan demographics, IRC §415 limits, actuarial assumptions, staff costs, and 401(k) integration. A licensed actuary must certify a Cash Balance plan. Not tax or legal advice.
Calculator questions
How accurate is this estimate?
It's a planning estimate only. Actual Cash Balance contributions depend on plan demographics, IRC §415 lump-sum limits, actuarial assumptions, and 401(k)/profit-sharing integration. A licensed actuary must certify final numbers.
Why does age matter so much?
Cash Balance contributions are age-weighted — the closer you are to plan-defined retirement age (often 62), the more annual funding is needed to hit the §415 lifetime maximum. That favors owners 45+.
What are the IRC §415 limits?
For 2025 the §415 defined-benefit annual limit is $280,000, and the lump-sum equivalent caps the lifetime account balance at roughly $3.5M depending on age and interest rate assumptions.
Does this include 401(k) contributions?
No — this estimates the Cash Balance contribution only. Most owners pair this with a 401(k) profit-sharing plan, which can add another ~$70k–$80k of deductible contributions depending on age.
Can I really deduct this much?
Subject to actuarial limits and plan design, yes. For an owner age 60 earning $400,000+, combined Cash Balance + 401(k) deductions can exceed $350,000 annually. The math depends on staff demographics.