Free Tool · Verified 2026 IRS Limits

2026 Cash Balance Plan Contribution Calculator

See how much a high-income business owner can contribute — and deduct — with a cash balance pension plan. Enter your age and income; the calculator applies current IRS limits to estimate your maximum tax-deductible contribution.

Powered by the New Pension Planner.

Calculate Your Potential Savings

Adjust the sliders below to see how a custom pension plan can maximize your retirement contributions and reduce your tax liability.

50
1875
$350,000
$30k$600k+
32%
10%37%

Your Estimated Results

Annual Contribution

$0

Tax Savings (Est.)

$0

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How the estimate works

The IRS caps the benefit, not the contribution. A cash balance plan may fund a retirement benefit of up to $290,000 per year (IRC 415(b)) on compensation up to $360,000, and the fewer years an owner has left to fund that benefit, the larger each year's deductible contribution can be — which is why the estimate climbs as the age slider does through the 50s and levels off in the early 60s. A 401(k) deferral of $24,500 ($8,000 more at 50+) plus profit sharing stack on top of the pension figure shown.

Estimated annual cash balance contribution by ageLine chart of the estimated annual cash balance contribution by owner age at $350,000 of compensation: $124,526 at age 40, peaking at $266,600 at age 60, then $240,700 at age 65.$0$125k$250k$375k$500k404550556065Owner age$125k$160k$205k$262k$267k$241k
Modeled with the New Pension Planner at $350,000 of W-2 compensation, single owner, 2026 IRS limits. The contribution amount does not depend on the tax rate; the calculator's 32% default only sizes the tax saving. Estimates from the same lookup the calculator above runs, not a quote: the exact range is set by a signed plan document and an actuarial valuation.
  • Age 40: $124,526 per year
  • Age 45: $159,580 per year
  • Age 50: $204,594 per year
  • Age 55: $262,428 per year
  • Age 60: $266,600 per year
  • Age 65: $240,700 per year

Cash Balance Calculator FAQs

How much can I contribute to a cash balance plan?

It depends primarily on your age and compensation. A cash balance plan funds a retirement benefit of up to $290,000 per year (the 2026 IRC 415(b) limit), and the older you are, the fewer years remain to fund it — so annual deductible contributions grow with age, often well past $200,000 for owners in their 50s and 60s. The calculator models this from your age and income.

Can I combine a cash balance plan with a 401(k)?

Yes — most designs pair the two. For 2026 you can defer $24,500 into a 401(k) ($8,000 more at age 50+), add employer profit sharing, and stack the cash balance contribution on top. The combination is usually what produces the largest total deduction.

What information do I need to run the calculator?

Just your age and your compensation (W-2 salary or business profit). For a full plan design — entity type, spouse participation, and employees — continue into the New Pension Planner or request a custom analysis.

Is the result a quote?

No. The output is an estimate based on IRS limits and standard actuarial assumptions. Your exact contribution range is set by a signed plan document and an actuary's valuation — that's the custom design work we do before anything is filed.

2026 limits verified against IRS Notice 2025-67 and IR-2025-111.

Go deeper

Cash balance plans guide

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Model entity type, spouse participation, and tax rates.

Case studies

Real designs with the numbers behind each outcome.

This guide is educational and is not individualized tax, legal, or investment advice. Contribution limits and tax rules change annually and depend on your specific situation; figures are illustrative. Consult a qualified professional before acting.