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The Pension Deductions Defined Benefit Plan Calculator is a free pension calculator and retirement calculator that estimates your maximum annual contribution and total accumulated amount at your assumed retirement age of 62 — using only your age and three-year average income.
A Defined Benefit Plan is the most powerful tax deduction available to self-employed professionals and small business owners. For a self-employed individual in their mid-40s to mid-50s earning over $150,000, the annual tax deduction can exceed $100,000 — far beyond what a 401(k) or SEP-IRA alone can provide.
Use this calculator to find out your number in under 2 minutes, with no obligation.
Use this free DB contribution calculator to enter your age and average three-year income. Your estimate appears instantly — no phone number or email required to see your result.
The estimate is based on IRS actuarial tables for a first-year Defined Benefit Plan. Your actual contribution will be certified by an enrolled actuary and may differ based on your specific circumstances, business entity, and plan design.
Fill in the details below to receive your personalised pension estimate.
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Under IRS regulations, the maximum annual contribution to a Defined Benefit Plan depends on your age, income, and years until retirement. Here is how our calculator uses those inputs.
The older you are, the larger your required contribution — because the actuary has fewer years to fund the same retirement benefit by age 62. This is why DB Plans are especially powerful for professionals over 45: starting late actually increases the annual deduction.
Your maximum contribution is calculated from 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 only — not K-1 distributions. The IRS maximum compensation for 2026 is $360,000.
Based on an assumed 5% annual return on plan assets, the calculator projects how much will accumulate in your DB Plan by retirement age 62. This figure illustrates the long-term wealth-building power of the plan in addition to the annual tax deduction.
Why you still need an enrolled actuary: DB Plan contributions must be certified annually by an enrolled actuary (EA) — a credential issued by the Joint Board for the Enrollment of Actuaries. The actuary ensures contributions comply with IRS minimum and maximum funding requirements, prepares the plan document, and files Form 5500 annually. Pension Deductions' team includes enrolled actuaries who handle this process for you from setup through annual administration.
A Defined Benefit Plan is not right for everyone — but for the right professional, it is the largest legal tax deduction available.
Independent physicians, hospitalists, locum tenens doctors, and other healthcare professionals who operate as sole proprietors or through professional corporations are among the highest users of Defined Benefit Plans. High income, stable earnings, and significant tax exposure make them ideal candidates.
Typical deduction: $150K–$300K/yrSolo attorneys and law firm partners structured as pass-through entities can use a DB Plan to dramatically reduce their taxable income. Partners over 50 with high draw income are particularly well-suited for the combination of a Safe Harbor 401(k) and a Defined Benefit Plan.
Typical deduction: $150K–$300K/yrManagement consultants, IT contractors, financial advisors, and other independent professionals billing through a sole proprietorship or single-member LLC are excellent candidates — especially those earning over $150,000 per year who have already maxed out their SEP-IRA or Solo 401(k).
Typical deduction: $80K–$200K/yrBusiness owners with a small team can still establish a Defined Benefit Plan — but the plan design must account for required employee contributions. A new comparability profit sharing plan or a floor-offset structure can often minimize employee costs while maximizing the owner's deduction.
Typical deduction: $100K–$250K/yrThe following illustrative examples are based on actuarial estimates. Actual contributions will vary based on your specific plan design and must be certified by an enrolled actuary.
Accumulation figures assume 5% annual return on plan assets. Contribution figures are first-year estimates. All figures are illustrative — actual amounts require actuarial certification. Source: IRS Rev. Proc. 2024-40.
Contributions to a Defined Benefit Plan are based on your age and compensation. These are the IRS limits that govern your maximum deduction.
| Limit type | 2025 | 2026 |
|---|---|---|
| Defined Benefit Plan — max annual benefit (§415b) UP | $280,000 | $290,000 |
| Max compensation for DB plan purposes (§401a17) | $350,000 | $360,000 |
| 401(k) employee deferral (stacked with DB 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 |
| Total 401(k) limit incl. employer (§415c) | $70,000 | $72,000 |
| HCE compensation threshold | $155,000 | $160,000 |
Source: IRS Notice 2025-67 · IRS Rev. Proc. 2024-40 · Verified against IRS.gov (updated April 2026)
Common questions about the Defined Benefit Plan Calculator and how DB Plans work for self-employed professionals.
Our pension planning team handles everything from plan design to actuarial certification and annual IRS filings. See your exact contribution limit — free.
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 Defined Benefit Plan contributions must be calculated and certified by an enrolled actuary. Do not use this calculator to determine contributions for an existing plan. 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: June 2026.
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If you fall into any of the above mentioned categories, using our Defined Benefit Plan Calculator could potentially save you a substantial amount of money. The calculator can quickly and accurately determine your possible contributions to a Defined Benefit Plan. Once you are ready to set up the plan, our actuaries can design and administer it for you at a minimal cost.
Our Defined Benefit Plan Calculator stands out as the only one on the Internet capable of computing intricate actuarial figures in a fraction of a second, providing detailed reports on contributions almost instantaneously.
The Internal Revenue Service (IRS) sets contribution limits for Defined Benefit Plans to ensure that these plans remain equitable and sustainable over the long term. The IRS imposes two primary limits on Defined Benefit Plan contributions: the annual funding limit and the maximum benefit limit.
The annual funding limit dictates the maximum amount that can be contributed to a Defined Benefit Plan in a given year. This limit is determined by various factors, including the participant's age, salary, and years of service, as well as prevailing interest rates and actuarial assumptions.
The maximum benefit limit restricts the total amount of benefits that can be paid from a Defined Benefit Plan to a participant upon retirement. This limit is designed to prevent excessive benefits for highly compensated employees and ensure that the plan remains in compliance with IRS regulations.
Employers can leverage actuarial analysis to optimize Defined Benefit Plan contributions within the constraints of IRS regulations. By carefully examining factors such as employee demographics, salary levels, and benefit formulas, employers can design plans that maximize contributions while remaining compliant with IRS guidelines.
Some Defined Benefit Plans allow participants to make voluntary contributions in addition to employer contributions. These voluntary contributions can help participants maximize their retirement savings and bridge any gaps between the plan's benefit levels and their desired retirement income.
