Cash Balance Calculator

For Owner-Only Businesses
 
 
Overview

This calculator estimates the amount a business owner in an owner-only business may contribute to a Cash Balance + 401(k) Combo Plan. The calculator projects the minimum and maximum funding amounts, illustrates the first year estimated contributions, and calculates the future value at retirement age for both plans.

 
Enter Details
 

Annual Compensation

For sole proprietors or owners of entities taxed as partnerships, compensation is defined as the owner’s Net Earnings from Self Employment (Income from Schedule C or Schedule K-1). An S-Corp may only use W-2 compensation.

Enter Spouse Details

 

 
 
 
– Cash Balance Illustration

Presented by July Business Services for

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 Amount
First year Account Allocation
401(k) Plan – Salary Deferrals
401(k) Plan – Profit Sharing
Cash Balance Plan  
Total
Estimated Accumulation at Retirement
401(k) Plan
Cash Balance Plan
Total
Pay used in calculation
The above calculations assume a retirement age of and an annual interest rate of . The Cash Balance formula is of compensation 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 Amount
First year Account Allocation
401(k) Plan – Salary Deferrals
401(k) Plan – Profit Sharing
Cash Balance Plan  
Total
Estimated Accumulation at Retirement
401(k) Plan
Cash Balance Plan
Total
Pay used in calculation
The above calculations assume a retirement age of and an annual interest rate of . The Cash Balance formula is of compensation 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 Amount
First year Account Allocation
401(k) Plan – Salary Deferrals
401(k) Plan – Profit Sharing
Cash Balance Plan  
Total
Estimated Accumulation at Retirement
401(k) Plan
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.

 

© , July Business Services