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How much can I contribute
to a Defined Benefit Plan
based on my earnings
from my business??
check to enter as dates
annual compensation level
check if self-employed
Maximum Contribution
% of Pay
The amount of contribution that can be made for an individual depends on their age, level of pay, and years of prior service with the plan sponsor.
40 $79,470
50 $178,373
60 $213,747
 See DBMinMaxTable
Shared Links
Updated 06/26/2006 (APC)

Automated Defined Benefit Plans for Entrepreneurs

Physician, age 48, can make $150,982 deductible contribution.
Like other tax-deductible retirement programs, Defined Benefit Pension Plans provide:
  • Immediate tax deduction
  • Tax-deferred growth on assets
  • Retirement security
  • Employee incentives
To these features Defined Benefit plans add a key distinctive:
  • Much higher contribution levels for individuals approaching retirement (APC) capitalizes on the power of the internet and the latest technologies to bring the tremendous tax-saving potential of Defined Benefit plans to entrepreneurs.  Small-business owners who are planning for retirement can learn about Defined Benefit plans, calculate the appropriate level of contributions, and set up the actual plan for their business.

For many, this entire process can be completed online.  More complex situations may require the consulting expertise of our actuaries at Friberg Retirement Plan Consultants (see information to the right).  In either case, we provide professional services on an objective basis, independent of your plan's funding arrangement, to assist you in meeting your specific business, as well as personal, financial goals.

A defined benefit plan may be an option to consider when reviewing retirement plans....  Employers can generally contribute (and, therefore, deduct) more than to other types of plans.

The complex governmental regulations and mathematics governing Defined Benefit plans require the knowledge and expertise of Enrolled Actuaries to establish and maintain such a plan.  While the cost of these services can sometimes be prohibitive, the efficiencies delivered by this site and by the actuaries at Friberg Retirement Plan Consultants (on the right) make these services both highly competitive and quite affordable.

Consultant, age 57, earning $165,000, can make $213,292 deductible contribution.
Are pension plans a bit of a mystery to you?
Check out the PlanEducator for articles ranging from basic concepts to specific types of plans, each focusing on how the features discussed may benefit or impact you.  Numerous examples given from the business owner's vantage point aid in understanding the relevant issues.
Do you want to see specific numbers based on your particular situation?
  • The DBQuickQuote calculator(on the left) gives a quick and accurate maximum possible contribution amount based on your age, years of service, and pay.
  • You may want to review the complete DBMinMax table which shows the minimum pay necessary to achieve the absolute maximum contribution at each age.
  • The DBIllustrator (coming soon) will provide a complete Defined Benefit Plan illustration for yourself and any employees.  You can adjust a wide range of parameters to fit your specific objectives.  This is also the first step in setting up an actual plan for yourself online.
  • If you are interested in one of the special types of Defined Benefit plans discussed in the PlanEducator, email our consultants and we will be in touch with you.
Are you ready to set up your plan and start start deducting contributions?
  • The DBInstaller (coming soon) will provide a complete Defined Benefit plan document to download and sign, naming you (or your designee) as Trustee, so that you can immediately make contributions to your new plan at the institution of your choosing.
  • If you would like to establish a plan at once, contact our consultants.
  • If your situation calls for a more complex solution than provided by the DBIllustrator and DBInstaller (see ideas in the PlanEducator), contact our consultants.
Unique planning opportunities make defined benefit pension plans attractive to both large and small closely held companies....  Owners of small companies often find defined benefit pension plans to be the best vehicle for accumulating funds for retirement.
Traditional defined benefit pension plans have a longer history and broader precedent than any other type of retirement plan available today.  They hold tremendous tax-saving potential for many small business owners, and their popularity will only increase as baby-boomer entrepreneurs near retirement age.
AutomatedPensions, Inc.
9410 Gatetrail Drive
Dallas, TX 75238