Contribution Charts

Cash Balance Plans

 

Small Company Plan

 

Participant
Compensation
SEP or Profit Sharing Pro Rata
Integrated Profit Sharing
16.74% + 5.7%
over $94,200
Cross Tested Profit Sharing
20% vs. 5%
Defined Benefit Pension NRD 65

Owner
Age 55
$220,000
$44,000
$44,000
$44,000
$145,277

Employee 1
Age 45
$40,000
$8,000
$6,696.24
$2,000
$18,428

Employee 2
Age 38
$30,000
$6,000
$5,022.18
$1,500
$10,396

Employee 3
Age 32
$25,000
$5,000
$4,183.15
$1,250
$7,101

Employee 4
Age 27
$20,000
$4,000
$3,348.12
$1,000
$4,911

Employee 5
Age 22
$20,000
$4,000
$3,348.12
$1,000
$4,297

Total
Contribution
$355,000
$71,000
$66,599.81
$50,750
$190,410

% Of Contribution
for Owner
 
61.97%
66.07%
86.7%
76.3%
 
 
 

One Person Plan
(Comparison - EZ-K)

 

Name(s)

W-2 Wages
"EZ-K"

Profit Sharing/
Money Purchase

SEP

Simple IRA

Contribution

Deferral

Contribution

Deferral

Owner

$25,000

$6,250

$15,000

$6,250

$6,250

$750

$10,000

Owner

$50,000

$12,500

$15,000

$12,500

$12,500

$1,500

$10,000

Owner

$75,000

$18,750

$15,000

$18,750

$18,750

$2,250

$10,000

Owner

$100,000

$25,000

$15,000

$25,000

$25,000

$3,000

$10,000

Owner

$125,000

$28,000

$15,000

$31,250

$31,250

$3,750

$10,000

Owner

$150,000

$28,000

$15,000

$37,500

$37,500

$4,500

$10,000
More about EZK here
 
 

One Person Plan
(Defined Benefit/401(k) Examples)

 

Owner's
Age

Compensation
$120,000

Compensation
$50,000

NRA

Allowable
401(k) Deferral (1)

40

$53,557

$28,474

62 (2)

$15,000

45

$78,874

$36,162

62 (2)

$15,000

50

$118,943

$49,559

62 (2)

$20,000 (3)

55

$162,658

$79,299

62

$20,000 (3)

60

$151,716

$97,607

65

$20,000 (3)

60
$140,722(4)

$140,722

62

$20,000 (3)

 
  1. Requires the establishment of a 401(k) Plan.
  2. Higher contribution amounts are available if participant plans on retiring before age 62.
  3. Includes 401(k) Catchup Contribution -- $5,000 in 2006
  4. Note: Lesser years until retirement (retirement age of 62).
 

These charts should be used for informational purposes only.
Many factors such as interest and mortality assumptions, duration of the business and assumed retirement age affect the allowable contribution.