The contribution capacity
vanilla 401(k) limits don't reach
A high-earning practice owner has access to a retirement contribution architecture far above the standard 401(k) limit. Defined Benefit + Cash Balance + 401(k) stacks can support $250K-$400K of annual tax-deferred contributions for the right age and income profile. This calculator estimates the capacity for your situation.
Your inputs
Your practice profile
Estimated capacity
DB + Cash Balance + 401(k) stack
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Approximate combined annual contribution capacity
Enter your profile to see the estimate.
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Approximate annual tax deduction
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Versus 401(k) maximum alone ($70K total in 2026)
Defined Benefit / Cash Balance plans require actuarial certification, ERISA compliance, and ongoing administration. Setup costs $2,000-$5,000; annual admin runs $3,000-$8,000. Worth it when the contribution capacity exceeds standard plans by $100K+.
The strategy MicroTax actually applies
DB plans require actuarial certification, not online estimates
The estimate above gives an order-of-magnitude sense of what's available. The actual contribution capacity for any specific practice is determined by an enrolled actuary, signed off as part of an annual valuation, and certified to the IRS.
The variables that move the actual number meaningfully: specific compensation history (highest 3-year average), retirement-age assumption, interest rate assumption, employee demographics (ages, comp, tenure of non-owner staff), and the plan design (DB-only, cash balance hybrid, combo with 401(k)). Each variable can swing the contribution capacity by $20-60K annually.
MicroTax engagements involving DB plans coordinate with specialist actuaries on plan design, run the non-discrimination math, and integrate the plan with the practice owner's broader tax architecture. See the physicians and attorneys advisory page for the broader context.
Assumptions in this calculation
- 2026 401(k) contribution limit of $70,000 total (employee + employer + profit-sharing), with $7,500 catch-up at age 50+.
- DB plan capacity by age uses simplified linear interpolation across published age bands. Real plans require actuarial certification per IRC §415(b) limits.
- Employee dilution simplified to 5% per non-owner employee, capped at 50%. Real non-discrimination testing depends on employee demographics (age, comp, tenure).
- DB amount capped at 50% of practice income as a sanity bound. Real plans can sometimes go higher for older owners with strong compensation history.
- Excludes plan setup costs ($2K-$5K), annual administration costs ($3K-$8K), and actuarial certification fees.
- Real plans typically require a 3-5 year funding commitment to satisfy IRS permanency requirements.
This is illustrative, not advice. The figures above are estimates based on simplified federal assumptions. They do not constitute tax advice, financial advice, or a guaranteed projection of outcomes. Personal tax situations involve state taxes, NIIT, AMT, phase-outs, specific deductions, and many other factors not modeled here. Before making any tax-driven financial decision, consult a qualified tax advisor.
A calculator estimates. An advisor delivers
Defined Benefit plan design is technical work that requires actuarial certification. We coordinate with specialist actuaries and design the plan to fit your practice and broader tax architecture. The discovery call covers eligibility and order-of-magnitude.