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Get a free instant estimate of your maximum contribution and $3.7 million lifetime accumulation, updated for 2026 IRS limits.
The Pension Deductions Cash Balance Plan Calculator is a free cash balance pension calculator and retirement calculator that estimates your maximum annual contribution and total accumulated balance at your assumed retirement age of 62 — using only your age and three-year average income.
A Cash Balance Plan is a hybrid defined benefit plan that works like a personal pension account — and one of the largest tax deduction vehicles available to self-employed professionals. Each year, your employer (you, if self-employed) credits a set contribution to your hypothetical account, plus a guaranteed interest credit. For a self-employed professional in their 40s or 50s earning over $150,000, the annual tax deduction can exceed $150,000 — and the lifetime accumulation can reach $3.7 million.
Use this free cash balance plan contribution calculator to find your number in under 2 minutes, with no obligation — and see exactly how much federal tax deduction you can claim this year.
Use this free CB contribution calculator to enter your age and average three-year income. Your estimate appears instantly.
The estimate is based on IRS actuarial tables for a first-year Cash Balance Plan. Your actual contribution will be certified by an enrolled actuary and may differ based on your specific circumstances, business entity, plan design, and interest crediting rate.
Fill in the details below to receive your personalised pension estimate.
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Average of your last 3 years' compensation
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A Cash Balance Plan credits a set annual contribution to each participant’s hypothetical account, plus an annual interest credit. Here is how our calculator uses your inputs to estimate both figures.
The older you are, the larger your required contribution — because the actuary has fewer years to fund the target account balance by retirement age 62. This is why Cash Balance Plans are especially valuable for professionals over 45: the contribution required to fund a given benefit by retirement actually increases with age, producing a larger annual tax deduction.
Your maximum contribution is based on your average three-year compensation. For sole proprietors and LLCs, this is net self-employment income. For S-Corps, this is your W-2 salary. The IRS maximum compensation used for plan purposes is $360,000 in 2026. The interest crediting rate used for estimation is a standard 5% — your actual plan may use a different rate based on Treasury or fixed-rate indexes.
The calculator projects the total hypothetical account balance at retirement age 62, assuming contributions at the estimated level plus 5% annual interest credits. The IRS lifetime lump-sum cap for Cash Balance Plans in 2026 is approximately $3.7 million — one of the most compelling features of this plan type for professionals who start early enough.
Cash Balance vs. Traditional Defined Benefit, what’s different: Unlike a traditional Defined Benefit Plan that promises a monthly annuity at retirement, a Cash Balance Plan expresses the same IRS-backed promise as a hypothetical lump-sum account balance. The contribution limits are identical — both are subject to IRS §415(b) — but participants can see a running account balance rather than an annuity promise, making the plan easier to understand and more portable when rolled into an IRA at retirement.
A Cash Balance Plan is particularly effective for professionals who want the contribution power of a Defined Benefit Plan with the clarity of an account balance they can see and roll into an IRA.
Independent physicians, hospitalists, and locum tenens doctors with high stable incomes are among the strongest candidates. A Cash Balance Plan combined with a Safe Harbor 401(k) can produce total annual deductions of $150,000–$340,000 or more, depending on age and compensation structure.
Typical deduction: $150K–$340K/yrSolo attorneys and law firm partners structured as pass-through entities benefit enormously from Cash Balance Plans. The plan’s account-balance structure is also well-suited to law firm partnerships where multiple owners want individual account transparency rather than a shared annuity promise.
Typical deduction: $150K–$300K/yrHigh-earning independent professionals billing through a sole proprietorship or single-member LLC — management consultants, IT contractors, financial advisors — who have already maxed out their SEP-IRA or Solo 401(k) and want the next level of tax deduction and tax-deferred savings.
Typical deduction: $80K–$200K/yrCash Balance Plans are often preferred over traditional Defined Benefit Plans for small businesses with employees because the cost per employee is more predictable — each employee receives a flat percentage-of-pay credit rather than a benefit tied to their salary history. Plan design can minimize employee costs while maximizing the owner’s deduction.
Typical deduction: $100K–$250K/yrThe following illustrative examples are based on actuarial estimates for first-year Cash Balance Plans. Actual contributions vary and must be certified by an enrolled actuary.
Accumulation figures assume 5% annual interest credit on plan assets. Contribution figures are first-year estimates. All figures are illustrative — actual amounts require actuarial certification. Source: IRS Rev. Proc. 2025-67.
Both plans share the same IRS contribution limits but are structured differently. The right choice depends on your workforce, cash flow, and how participants want to see their benefit expressed.
Cash Balance Plan contributions are actuarially determined based on age and compensation. These are the IRS limits that govern your maximum annual benefit and lifetime accumulation.
| Limit type | 2025 | 2026 |
|---|---|---|
| Cash Balance / DB Plan — max annual benefit (§415b) UP | $280,000 | $290,000 |
| Lifetime lump-sum cap (§415b equivalent) UP | ~$3.6M | ~$3.7M |
| Max compensation for plan purposes (§401a17) | $350,000 | $360,000 |
| 401(k) employee deferral (stacked with CB Plan) | $23,500 | $24,500 |
| 401(k) catch-up (age 50+) | $7,500 | $8,000 |
| Enhanced catch-up (age 60–63, SECURE Act 2.0) NEW | $11,250 | $11,250 |
| Safe Harbor 401(k) match when combined with CB Plan | Up to 4% | Up to 4% |
| Profit-sharing cap when combined with CB Plan | 6% of comp | 6% of comp |
Source: IRS Notice 2025-67 · IRS Rev. Proc. 2024-40 · Verified against IRS.gov (updated April 2026)
Illustrative estimates only. Assumes 3-year average compensation ≥$290,000 and 5% interest credit. Actual amounts require actuarial certification. Source: IRS Rev. Proc. 2024-40.
Common questions about the Cash Balance Plan Calculator and how Cash Balance Plans work for self-employed professionals and small business owners.
Our enrolled actuaries design, certify, and administer Cash Balance Plans for self-employed professionals and small business owners across the United States. See your exact contribution limit — free.
Page maintained by the Pension Deductions enrolled actuary team. Last reviewed: September 2026. IRS limits verified annually.
All contribution limits sourced from IRS Notice 2025-67 and IRS Rev. Proc. 2024-40 (verified April 2026). Calculator estimates are illustrative only and based on first-year actuarial approximations. Actual Cash Balance Plan contributions must be calculated and certified by an enrolled actuary. Interest crediting rates, existing plan assets, and participant demographics will affect actual contribution amounts. This page is for informational purposes only and does not constitute tax, legal, or financial advice. Consult a qualified retirement plan specialist before establishing a plan. Last updated: September 2026.
Fill in the details below to receive your personalised pension estimate.
US numbers only, e.g. (646) 409-1660
Average of your last 3 years' compensation
* Required field 🔒 Your information is private and will only be used to generate your estimate.
Contributions to a cash balance plan are generally calculated by an actuary based on the age and the annual income of the individual. However, our one-of-a-kind Cash balance plan calculator can ease the pain for you. Use our Cash balance plan calculator to get an approximate estimate of how much you can contribute each year to a cash balance plan.
The Cash balance plan calculator is a must if you
Start by inputting your current age, retirement age, and expected salary into the calculator. This will provide you with a baseline estimate of your retirement savings.
Experiment with different contribution levels to see how they impact your retirement income. Consider contributing as much as you can comfortably afford to maximize your savings.
Adjust the interest rate to see how it affects your retirement savings. Higher interest rates can lead to faster growth of your cash balance account, potentially boosting your retirement income.
Take advantage of catch-up contributions if you're over the age of 50. Cash balance plans allow for larger contributions for older individuals, so consider increasing your contributions to take full advantage of this opportunity.
Regularly review and update your retirement savings strategy. As your financial situation changes, it's important to revisit your contributions and adjust them accordingly. The cash balance plan calculator can help you stay on track and make informed decisions.
