How much can I contribute to a Cash Balance Plan?

Can a Cash Balance Plan help you save more than in a 401k?

For some investors, a Cash Balance Plan makes it possible to save much more for retirement than is possible in a 401(k) alone. This calculator estimates how much a business owner may contribute to a Cash Balance + 401(k) Combo Plan. (This illustration is for an owner-only business.)

First Name

Last Name

Company Name

Annual Compensation

Company Type

Birth Date

Owner Deferral?

Yes No

Do you have employees?

Yes No

Plan Year

Is this Owner and Spouse?

Yes No

asd- Cash Balance Illustration

Presented by July Business Services for asd asd

The bar chart provides an estimate of contributions for Year 1 and Year 2 of the plan. The law provides a permissible range of contributions for cash balance plans as calculated actuarially each year. Profit Sharing and 401(k) contributions are not mandatory in solo plans; however, profit sharing contributions are mandatory in plans with employees. Cash balance plans must be funded at a minimum level.

Result Details

The table below summarizes the estimated annual allocations to the cash balance and defined contribution plans. The cash balance contribution is defined in the plan document and can be changed by executing a plan amendment.

Additional Plan Details

Owner

Plan	Details	Amount
First Year Account Allocation
First year Account Allocation
401(k) Plan – Salary Deferrals	Employee elective deferral
401(k) Plan – Profit Sharing	Allocation to profit sharing account
Cash Balance Plan	Allocation to cash balance account
Total	Revise Cash Balance Amount
Estimated Accumulation at Retirement
Estimated Accumulation at Retirement
401(k) Plan	Estimated accumulation in the 401(k) Plan
Cash Balance Plan	Estimated accumulation in the Cash Balance Plan
Total
Pay used in calculation
The above calculations assume a retirement age of and an annual interest rate of . and the Profit Sharing formula is of compensation where compensation is limited to the IRS maximum. The Cash Balance Plan is assumed to be funded for ten years or to retirement age if earlier. The above cash balance allocation and percent are based on the maximum amounts.

Spouse

Plan	Details	Amount
First Year Account Allocation
First year Account Allocation
401(k) Plan – Salary Deferrals	Employee elective deferral
401(k) Plan – Profit Sharing	Allocation to profit sharing account
Cash Balance Plan	Allocation to cash balance account
Total	Revise Cash Balance Amount
Estimated Accumulation at Retirement
Estimated Accumulation at Retirement
401(k) Plan	Estimated accumulation in the 401(k) Plan
Cash Balance Plan	Estimated accumulation in the Cash Balance Plan
Total
Pay used in calculation
The above calculations assume a retirement age of and an annual interest rate of . and the Profit Sharing formula is of compensation where compensation is limited to the IRS maximum. The Cash Balance Plan is assumed to be funded for ten years or to retirement age if earlier. The above cash balance allocation and percent are based on the maximum amounts.

Combined – Owner and Spouse

Plan	Details	Amount
First Year Account Allocation
First year Account Allocation
401(k) Plan – Salary Deferrals	Employee elective deferral
401(k) Plan – Profit Sharing	Allocation to profit sharing account
Cash Balance Plan	Allocation to cash balance account
Total
Estimated Accumulation at Retirement
Estimated Accumulation at Retirement
401(k) Plan	Estimated accumulation in the 401(k) Plan
Cash Balance Plan	Estimated accumulation in the Cash Balance Plan
Total

Disclaimer

July Business Services, its affiliates, and third-party vendors provide retirement projections and financial calculators as interactive tools that estimate hypothetical investment outcomes-investment results and outcomes are NOT guaranteed and will vary. This illustration does not include mandatory contributions on behalf of any employees you may have currently or in the future. For a more specific analysis please contact your JULY regional sales consultant.